Question

7. What was a result of the bank failures that followed the stock market crash in 1929? A. Americans refused to work for publicly traded companies. B. Investors began to buy businesses directly. C. The stock market was closed for years. D. There wasn't enough money in circulation to support a healthy economy.

Answer 1

A major result of the bank failures that followed the stock market crash in 1929 was that "D. There wasn't enough money in circulation to support a healthy economy," since people had completely lost faith in the banking system.

Answer 2

The correct answer is D. There wasn't enough money in circulation to support a healthy economy

People and companies invested more and more and over-inflating the prices of stocks and assets and at one point the bubble burst. When people wanted to get money from banks and save what they could they realized that the banks had made a terrible mistake and were left with no physical money to give them which ruined the economy completely.