Question

7 which statement best explains how bank failures contributed to the great depression?
a people lost their savings because the government did not insure bank deposits.
b business could not be done when president franklin roosevelt declared a bank
holiday.
c the interest rates on bank loans were too high.
d foreign investors did not invest enough in u.s. banks.

8 how did the great depression affect american society?
a the price of agricultural goods decreased, causing an increase in demand for farm
labor.
b manufacturing wages increased, causing businesses to concede to labor union
demands.
c demand for luxury goods increased, causing overproduction in manufacturing.
d businesses were forced to close, causing widespread unemployment.

Explanation:

• Question 7:
• Before the FDIC (Federal Deposit Insurance Corporation) was established, bank deposits were not insured. When banks failed, people lost their savings. This led to a loss of consumer confidence and reduced spending, which contributed to the Great Depression.
• Option B is incorrect because the bank holiday was a measure to address the bank failures, not the cause of the contribution to the Great Depression.
• Option C is incorrect as high - interest rates on loans were not the main way bank failures contributed to the Great Depression.
• Option D is incorrect as foreign investment in U.S. banks was not the key factor in how bank failures contributed to the Great Depression.
• Question 8:
• During the Great Depression, many businesses could not afford to stay open due to lack of demand (from consumers who had lost savings, jobs, etc.). This led to widespread unemployment.
• Option A is incorrect because the price of agricultural goods decreased, but this led to a decrease in the demand for farm labor as farmers could not afford to hire as many workers.
• Option B is incorrect as manufacturing wages did not increase during the Great Depression; in fact, many workers faced wage cuts.
• Option C is incorrect as the demand for luxury goods decreased during the Great Depression.

Answer:

1. A. People lost their savings because the government did not insure bank deposits.
2. D. Businesses were forced to close, causing widespread unemployment.