By the summer of 1929, the economy was suffering. People had built up massive debt after a decade of fast spending. They could not buy anymore, so factory production slowed. Because of this, factories shut down, and people lost their jobs. With unemployment on the rise, many people had no income. And many people had borrowed money that they now had no way of paying back. Thus, banks began to fail and close their doors. People sold what stocks they had and stopped buying shares. On October 29, 1929, known today as Black Tuesday, the stock market crashed. 16 million shares were sold in one single day. The market lost $14 billion. This caused a panic. People rushed to withdraw any money they had left in banks. For many, it was too late, and they lost their life savings. This was the official start of the nation's worst economic crisis, the Great Depression.
Based on the passage, why did people withdraw their money from banks after Black Tuesday?
By the summer of 1929, the economy was suffering. People had built up massive debt after a decade of fast spending. They could not buy anymore, so factory production slowed. Because of this, factories shut down, and people lost their jobs. With unemployment on the rise, many people had no income. And many people had borrowed money that they now had no way of paying back. Thus, banks began to fail and close their doors. People sold what stocks they had and stopped buying shares. On October 29, 1929, known today as Black Tuesday, the stock market crashed. 16 million shares were sold in one single day. The market lost $14 billion. This caused a panic. People rushed to withdraw any money they had left in banks. For many, it was too late, and they lost their life savings. This was the official start of the nation's worst economic crisis, the Great Depression.
Based on the passage, why did people withdraw their money from banks after Black Tuesday?
because the banks forced them to
so that they could buy more stocks
because the stock market crash caused them to panic
so that they could afford more goods from factories