Question

What role did the Federal Reserve play in causing the Great Depression? * 5 points Its policies encouraged runs on banks, which exhausted their deposits and caused them to fail. Its policies discouraged lending at a time when more money was needed in the economy. It forced weak banks to close, causing depositors to lose their life savings.

Answer 1

Answer:

Its policies discouraged lending at a time when more money was needed in the economy.

Explanation:

Further, the Great Depression shows the significant jobs that cash, banks and the securities exchange play in our economy.

A third motivation to think about the Great Depression is that it drastically changed the job of government, particularly the central government, in our country's economy. Free Market Capitalism Caused the Great Depression.

The Federal Reserve, the national bank of the United States, was made in 1913.