All the following factors contributed to the Great Depression EXCEPT
A) an unstable European economy.
B) a lack of diversification in the United States economy.
C) a maldistribution of purchasing power.
D) conservative banking policies that restricted the availability of loans.
E) weak consumer demand.

Question

Quizplus · Accepted Answer

Conservative banking policies would typically restrict the availability of loans, which could theoretically prevent an economic bubble and a subsequent crash. However, during the period leading up to the Great Depression, the issue was more related to overly liberal lending practices and speculative investments, not overly conservative banking policies.

All the Following Factors Contributed to the Great Depression EXCEPT