Answer:
In the 1920s, the Central Bank of America decided to implement an "Easy credit policy". This policy enable people to obtain credit even without solid predictors that they can ever pay that credit back.
Originally, this was intended to promote economic development by increasing consumption.
Because of this leniency, many people in the country started to accumulated debts that they could never pay back. As a ripple effect, many companies are formed to close their operation because of the failure to obtain payments from their consumers. This caused major stocks started to experience a sharp decline in prices and caused the great depression.
