The 1920s were characterized by large numbers of bank failures each year, especially among country banks. Country banks were particularly inclined to fail because

Question

The 1920s were characterized by large numbers of bank failures each year, especially among country banks.  Country banks were particularly inclined to fail because

Quizplus · Accepted Answer

Country banks were particularly vulnerable to failure during the 1920s because a significant portion of their loan portfolios was made up of farm mortgages. When the agricultural sector faced difficulties, these banks were disproportionately affected, leading to higher rates of failure among them.

The 1920s Were Characterized by Large Numbers of Bank Failures