Between 1930 and 1933, many banks in the United States failed because _____

Question

Quizplus · Accepted Answer

Many banks failed between 1930 and 1933 because people lost confidence in them. This was partly due to the stock market crash of 1929, which triggered a period of economic depression and made people nervous about the safety of their savings. As a result, they began withdrawing their money from banks, causing a wave of bank failures that spread throughout the country. The FDIC was established in 1933 to insure deposits and restore confidence in the banking system, but by then the damage had already been done.

Between 1930 and 1933, Many Banks in the United States