In the 1920s, many rural banks failed because

-banks had speculated in stocks.

-farmers could not repay their loans.

-the stock market surged.

-consumer demand for goods decreased.

In the 1920s, many rural banks failed because banks had speculated in stocks. This, in turn, led to the failure of such banks and soon the Great Depression followed.

Correct answer choice is:

- banks had speculated in stocks

Explanation:

Since the financial recession expanded in the preceding 30s, and because farmers produced less and less wealth to use in town, banks started to collapse at frightening rates. During the 20s, there was an aggregate of 70 banks collapsing each year nationwide. Following the wreck through the first 10 months of 1930, 744 banks flunked - 10 times as plentiful.