Which of the following did not contribute to the thousands of U.S.bank failures in the 1930s?
A)Businesses failed,so loans were not repaid.
B)As the public grew concerned about the safety of its deposits,people withdrew more of their cash from banks.
C)Banks sold more securities.
D)The value of banks' assets declined.
E)The Fed loaned too many reserves to member banks.

Question

Quizplus · Accepted Answer

The Federal Reserve did not loan too many reserves to member banks; in fact, it was criticized for not providing enough liquidity to the banking system during the Great Depression.

Which of the Following Did Not Contribute to the Thousands