How did many banks fail consumers in the stock market crash of 1929?
Banks had invested customer savings in the stock market, losing depositors' money in the crash.
O Banks refused to pass on profits made in the stock market to depositors, keeping the money.
O Banks refused to issue loans to help investors pay for their financial losses in the crash.
O Banks only paid a small portion of insurance owed to depositors for their financial losses.

Despite the fact that just a small minority of Americans had invested in the stock market, everyone was affected by the crash. Banks lost millions of dollars as a result of the losses, and as a result, foreclosed on business and personal loans, putting pressure on clients to repay their loans whether or not they had the funds.

Explanation:

In the fall of 1929, the stock market lost over half of its value, throwing many Americans into financial despair. The stock market crash, on the other hand, did not trigger the Great Depression that followed as a single event. Even though only about 10% of American households had stock assets and speculated in the market, nearly a third of them would lose their life savings and employment as a result of the subsequent downturn. The link between the catastrophe and the decade of hardship that followed was complicated, incorporating underlying economic flaws that many policymakers had long overlooked.

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