Question

3. What caused banks to run out of money during the Stock Market Crash of 1929?

The Federal Reserve Board reduced how much money it gave banks to loan.
People stopped taking out loans because they were bankrupt.
Their customers could not repay their loans.
People sold off bank stocks, making them worthless.

Answer 1

Answer: The answer is C) Their customers could not repay their loans.

Explanation: When people lost their money in the stock market, and lost their jobs, they could no longer pay back their loans, and banks ran out of money to operate on.

Answer 2

D, People sold off bank stocks, making them worthless.

People began to lose faith in the bank, so everyone sold their stocks at once, making them worthless.