During the Great Depression in the early 1930s,
A)bank runs closed many banks.
B)the money supply rose sharply.
C)the Fed decreased reserve requirements.
D)both a and b are correct.

Question

Quizplus · Accepted Answer

Bank runs closed many banks during the Great Depression, leading to a reduction in the money supply rather than an increase. The Fed also increased reserve requirements during this time, further reducing the available money supply.

During the Great Depression in the Early 1930s