Which of the Following Did NOT Significantly Exacerbate the Banking

question 38

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.