Question

Why did bank runs cause banks to fail?

Answer 1

It caused them to fail becuase people withdrew their deposits in cash, t o liquidate loans.

Step-by-step explanation:

“Bank runs” was when large numbers of anxious people withdrew their deposits in cash, forcing banks to liquidate loans , leading to bank failure.

Answer 2

Another phenomenon that compounded the nation's economic woes during the Great Depression was a wave of banking panics or “bank runs,” during which large numbers of anxious people withdrew their deposits in cash, forcing banks to liquidate loans and often leading to bank failure.

Step-by-step explanation: