Question

What caused the economic Panic of 1873?

Question 4 options:

Several small banks in the South shut down because of postwar inflation


The federal government began printing paper money to pay off its war debts.


The U.S. Treasury ran out of gold, prompting a run on banks across the country


Bad investments by a large banking firm forced the company to declare bankruptcy

Answer 1

D. Bad investments by a large banking firm forced the company to declare bankruptcy. when the banking firm of Jay Cooke and Company, a firm heavily invested in railroad construction, closed its doors on September 18, 1873, a major economic panic swept the nation.

Answer 2

Option D.

Step-by-step explanation:

Bad investments by a large banking firm forced the company to declare bankruptcy, is the right answer.

The Panic of 1873 was a monetary crisis that led to an economic slowdown in Europe and North America. This crisis prevailed in the years between 1873 until 1877. The panic in the United States was known as the "Great Depression" until the results of the early 1930's established a new standard. The Jay Cooke & Company was a significant factor of the United States banking enterprise, discovered itself inadequate to exchange some million dollars in Northern Pacific Railway securities. Some other firms also invested profoundly in the railroads. While companies were growing, the money they required to fund that increase was converting scarcer.