Bank Failures During The Great Depression
In the 1930s, Thomas Clement, a Boston carpenter, held $450 in a bank savings account. Following Black Monday, the bank informed him that his savings were gone. Which of the following best explains the cause of this loss?
AThe bank had invested its customers' deposits in the stock market and lost the funds when required to pay a new tax on financial activities.
BThe government requisitioned the funds in response to a global economic crisis.
CThe government requisitioned the funds to finance military expenditures for World War II.
DThe bank had invested its customers' deposits in the stock market and lost the funds when stock values fell by more than a quarter.