Answer :
Final answer:
The closure of banks during the Great Depression led to economic instability, reduced investment, and lack of trust in the banking system.
Explanation:
The closure of banks during the Great Depression contributed to economic damage by causing widespread financial instability and loss of savings for depositors.
Banks' failure to meet depositors' demands for withdrawals led to a decrease in liquidity and investment, exacerbating the economic downturn.
Without government deposit insurance at that time, the lack of trust in banks led to a reduction in loans to businesses, affecting various sectors of the economy and contributing to the severity of the depression.
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