Bank runs in the United States during the 1930s damaged the economy because:

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Bank runs occur when customers of a bank withdraw all or most of their deposits simultaneously due to concerns about the bank's solvency. In the 1930s, the loss of confidence in one bank quickly spread to other banks, leading to a chain reaction of withdrawals and ultimately damaging the economy. This was a result of a lack of effective deposit insurance and a failure on the part of the government and the Federal Reserve to act promptly and decisively to stem the panic.

Bank Runs in the United States During the 1930s Damaged