which action came as a result of the banking crisis?\na. people lost confidence in the banks and withdrew…

which action came as a result of the banking crisis?\na. people lost confidence in the banks and withdrew their money at alarming rates.\nb. banks loaned too much money because so many people were struggling financially.\nc. banks lowered their interest rates too much in an effort to help borrowers.\nd. banks froze deposits to reduce the excessive flow of cash that was causing inflation.

which action came as a result of the banking crisis?\na. people lost confidence in the banks and withdrew their money at alarming rates.\nb. banks loaned too much money because so many people were struggling financially.\nc. banks lowered their interest rates too much in an effort to help borrowers.\nd. banks froze deposits to reduce the excessive flow of cash that was causing inflation.

Answer

Brief Explanations:

During a banking crisis, people fear for the safety of their money, leading to a loss of confidence in banks and high - rate withdrawals. Option B is incorrect as banks loaning too much is a cause rather than a result of a banking crisis. Option C is not a typical direct result of a banking crisis. Option D is not a common action during a banking crisis as freezing deposits is extreme and not mainly related to reducing inflation - causing cash flow during a banking crisis.

Answer:

A. People lost confidence in the banks and withdrew their money