VERIFIEDNOT
Answered

Discover answers to your questions with Westonci.ca, the leading Q&A platform that connects you with knowledgeable experts. Explore a wealth of knowledge from professionals across various disciplines on our comprehensive Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

HOW DID THE STOCK MARKET CRASH CONTRIBUTE TO BANK FAILURES.
A . Investors who had lost their money in the stock market did not have enough money to pay the banks for the loans they took.
B. Banks made the decision to close many branches because people were investing in the stock market and not putting their money in banks
C. The government suspended trading on the stock market leaving the banks no way to get no money they had invested in the market.
D. Companies used profits they made in the stock market to start new types of banks causing established banks to close.

Sagot :

danielafuentes

Answer:

A.

Explanation:

bihariyadeep28

The stock market crash can contribute to bank failure because of the investors who had lost their money in this stock market did not have enough money to pay the banks for the loans they took and optioned A correct.

What is stock market?

Stock market of any country is a place where the security and the stocks of various companies and government bonds are traded and listed. The prices of these securities are decided by the forces of demand of these securities in the market.

The the big investors sometimes takes loans and advances from banks in order to put that money in the security's of stock market who's prices are expected to rise in the near future.

When the stock market crashes these big investors loses all their money and they turn insolvent having no money to pay back the loans taken by the bank. The amount of these loans is is so huge that it directly effects the day today working of the bank and results in bank failure.

Therefore, the correct option is A and " the investors who had lost their money in this stock market did not have enough money to pay the banks for the loans they took" is the correct statement.

Learn more about Stock Market here:

brainly.com/question/1415729

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.