great depression effects
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- The Economic Effects of the Great Depression
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- The Great Depression caused a lot of economic problems in the US, one of which being the banks failing.
- During this time period, a lot of people were taking money out of the bank, because so many companies were failing, causing a lot of panic.
- A big commercial firm just closed down, so I need to go get my money from the bank before it closes, too!
- Sir, we're short on reserves!
- I need my money!
- Because banks don't hold all of the deposits in reserves, when a lot of people demand to have their money, it leaves the bank short on reserves.
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