Question

Which of the following was NOT a contributing factor to bank failures?

A. the excessive amount of banking laws passed under Hoover
B. panicky depositors who withdrew their money from banks
C. banks were forced to sell off assets in order to raise cash
D. a lack of assets and deposits caused banks to fail

Answer 1

A. people lost confidence in the banks and withdrew their money at alarming rates

Explanation:

got it right on plato

Answer 2

A. is the correct answer because it is not true. Hoover did not have many banking laws passed, leading to banks not carrying sufficient assets to back up their depositors. All three other choices directly contributed to bank failures.