Final answer:
The collapse of the stock market led to weakened banks as they had invested in stocks that lost value, triggering bank failures. The lack of banking regulations meant depositors lost all their savings. These failures also limited communities' access to loans, further weakening the economy.
Step-by-step explanation:
The collapse of the stock market in 1929 led to weakened banks due to several factors.
Firstly, banks had invested heavily in the stock market themselves, and when stock prices crashed, the value of their investments plummeted.
Secondly, as customers started withdrawing their funds from banks out of fear, it triggered a sequence of bank failures, as banks were unable to meet these withdrawal demands.
Additionally, the lack of banking regulations meant that if a bank went bankrupt, depositors lost all their savings.
These failures not only hurt the depositors and banks but also impacted communities by limiting their access to loans, which further weakened the overall economy.