Question

Which was a direct result of bank failures in the 1920s and 1930s?

a) Increased consumer spending
b) Economic prosperity
c) The Great Depression
d) Industrial expansion

Answer 1

The direct result of bank failures in the 1920s and 1930s was the Great Depression.

Step-by-step explanation:

The direct result of bank failures in the 1920s and 1930s was c) The Great Depression.

The bank failures during this period were a major factor contributing to the economic collapse of the Great Depression. The loss of people's savings and the subsequent erosion of consumer demand led to a decrease in consumer spending, which in turn caused a decline in sales and an overall downward pressure on the financial markets. This contributed to a cycle of economic decline, unemployment, and widespread economic hardship.