Which statement explains why excessive use of credit was a cause of the great depression this is

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.

there is often only a small difference between what is legal and what is ethical when working with competitive intelligence..