Question

Why did many banks go out of business during the depression ​

Answer 1

The banks during the depression closed down since many businesses had no money to keep it open and the banks could not give out loans to those businesses and then continued to lose more money since the government also could not help because they too had no money

Answer 2

The inflation of U.S currency forced many businesses to shut down. They couldn't keep their prices affordable and still make a profit to support themselves. This forced them to close.