The banking panics in 1873 and 1893 were caused by:
A)asset bubbles in real estate.
B)overbuilding in the railroad industry.
C)gold rushes.
D)overly strict regulation of the banking industry.

Question

Quizplus · Accepted Answer

The banking panics in 1873 and 1893 were caused by overbuilding in the railroad industry. In both cases, a large amount of investment had been put into the railroad industry, which caused oversupply and unsustainable competition, leading to economic downturns and bank failures.

The Banking Panics in 1873 and 1893 Were Caused By