Question

Which action caused the banking crisis?
OA. People lost confidence in the banks and withdrew their money at alarming rates.
OB. Banks loaned too much money because so many people were struggling financially.
OC.
Banks lowered their interest rates too much in an effort to help borrowers.
OD.
Banks froze deposits to reduce the excessive flow of cash that was causing inflation.

Answer 1

Answer:

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

Explanation:

Answer 2

The action that caused the banking crisis was A. People lost confidence in the banks and withdrew their money at alarming rates.

Why was there a banking crisis?

The banking crisis came about when people did not believe that banks could be trusted to hold their money.

There was therefore a run on banks which led to banks having to shutdown as they could not produce the required money in such a short time.

Find out more on the banking crisis at https://brainly.com/question/25664180.

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