Bank panics were the result of

A) banks holding 100% of their deposits on reserve.
B) depositors attempting to withdraw more deposits than the banks held in reserve.
C) banks hoarding greenbacks during the Civil War.
D) the United States going off the gold standard in 1933.
E) money circulating too slowly.

Bank Panics

Situations in which a large number of bank customers withdraw their deposits simultaneously due to fears that the bank will become insolvent.

Deposits Reserve

Funds that banks are required to hold in reserve, either in their vaults or at a central bank, as a safeguard against bank runs and to ensure liquidity.

Greenbacks

A term historically used to refer to paper currency issued by the United States during the Civil War, recognized by their green coloring.