Question:

How did the banking panic contribute to the Great Depression

Last updated: 1/26/2024

How did the banking panic contribute to the Great Depression

How did the banking panic contribute to the Great Depression as more people went to withdraw money from their accounts as unemployment increase many banks had too much money on hand and were able to pay out withdrawals with interest the banks ran out of money because they were unable to collect on outstanding loans leading to widespread bank failures across the US banks made the decision to print money so that customers would have something to withdraw President Roosevelt forced all banks to remain open even if they had no cash reserves