Question

What was the effect of the depression of the 1890s on South Carolina?

A. Gold was discovered in Alaska.
B. Many banks failed and railroads went bankrupt.
C. Paper money was no longer backed by gold.
D. Inflation caused farmers to run large depts.
I think it's D is that correct?,

Answer 1

The effect of depression of the 1890s on South Carolina is that paper money was no longer backed by gold. This means that paper money has lost its value since it is no longer backed by the gold of South Carolina. The paper money loses its worth. It loses its purchasing power.