Which of the Following Did NOT Significantly Exacerbate the Banking

question 26

Multiple Choice

Which of the following did NOT significantly exacerbate the banking crisis of the early 1930s?

• A) the Fed's decision not to make loans to insolvent banks
• B) the large number of small, poorly diversified banks
• C) the large number of rural banks that held agricultural loans during a time of falling commodity prices
• D) the large amount of fraud carried out by bank managers

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