Answer:
Correct Answer:
Banks had invested customer savings in the stock market, losing depositors’ money in the crash.
Explanation:
The stock market crash was one of the lowest point in the history of American economy. It was so bad that, most American families lost their deposit in the banks leading to loss of confidence in banks and low spending.
For example, the New York's Bank of the United States collapsed. The bank had more than $200 million in deposits at the time, making it the largest single bank failure in American history.
