in the 1920s, many rural banks failed because\nbanks had speculated in stocks.\nfarmers could not repay…
in the 1920s, many rural banks failed because\nbanks had speculated in stocks.\nfarmers could not repay their loans.\nthe stock market surged.\nconsumers took their money out.
Answer
Brief Explanations:
In the 1980s, rural banks had lent money to farmers. When farmers couldn't repay due to economic - related issues like low crop prices, it led to bank failures. Speculation in stocks wasn't the main reason for rural bank failures, a stock market surge would not directly cause rural bank failures, and while consumer withdrawals could be a factor, the inability of farmers to repay loans was the primary cause.
Answer:
B. farmers could not repay their loans.