Final answer:
Owners of small family farms faced the most severe economic problems during the 1920s, due to overproduction, falling prices, and lack of governmental support leading to loan defaults, bank failures, and foreclosures. The correct answer is option c.
Step-by-step explanation:
During most of the 1920s, the group that experienced the most severe economic problems were the owners of small family farms. Agriculture suffered significantly in this era, with the end of World War I leading to overproduction and drastically falling prices for crops. Not only did President Coolidge veto attempts by Congress for federal price supports, but the lack of such supports meant that farmers continued to struggle financially, often defaulting on their loans. This led to rural bank failures and foreclosures on farms by larger, less sympathetic urban banks. With over 75 percent of the bank closures between 1930-1932 being rural banks, it's clear that farmers, mainly in the Great Plains, faced harsh economic realities, further exacerbated by natural disasters like droughts and the overall low prices for commodities.