In 1931, just as economic indicators were beginning to rise:
A) New York's Chase Manhattan Bank closed, increasing investors' panic and setting off runs on other banks
B) Austria's largest bank closed, triggering a panic that swept through Europe and caused European investors to withdraw their American gold and dump their American securities
C) a drought in the Midwest caused crop failures that raised food prices and increased panic
D) the tax increase of 1928 took effect, suddenly lessening the purchasing power of the average consumer
E) the stock market crashed again, this time with even more force than the 1929 collapse

Question

Quizplus · Accepted Answer

The closure of Austria's largest bank triggered a panic that spread throughout Europe, causing European investors to withdraw their American gold and sell their American securities, leading to a significant decline in economic indicators.

In 1931, Just as Economic Indicators Were Beginning to Rise