During the banking panic that occurred in the United States between October 1930 and January 1931, ________.

Question

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During the banking panic, both the currency ratio and excess reserves ratio increased as people withdrew their deposits and banks held onto more reserves. The increase in excess reserves was significant, more than doubling from $1.6 billion in October 1930 to $3.5 billion in January 1931. This decrease in bank deposits and reserves led to a sharp decline in the money supply.

During the Banking Panic That Occurred in the United States