Answer:
Deflation increased the real burden of debt and left many firms and households with too little income to repay their loans. Bankruptcies and defaults increased, which caused thousands of banks to fail. In each year from 1930 to 1933, more than 1,000 U.S. banks closed.
Step-by-step explanation:
This could also be your expected answer.
Many of the home loans during this period lasted no more than five years and many homeowners made little or no payment toward the principal. Falling incomes made it increasingly difficult for borrowers to make loan payments or to refinance outstanding loans as they came due.