THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Stock prices went up so fast that investors could not keep up with the changes.
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Stock prices fell, investors panicked and sold their stocks, which led to more panic.
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The government decided to close the stock market in New York.
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People decided to invest their money in stock markets in Europe.
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Detailed explanation-1: -By then, production had already declined and unemployment had risen, leaving stocks in great excess of their real value. Among the other causes of the stock market crash of 1929 were low wages, the proliferation of debt, a struggling agricultural sector and an excess of large bank loans that could not be liquidated.
Detailed explanation-2: -Among the suggested causes of the Great Depression are: the stock market crash of 1929; the collapse of world trade due to the Smoot-Hawley Tariff; government policies; bank failures and panics; and the collapse of the money supply.
Detailed explanation-3: -The crash unleashed a wave of disaster that would affect the whole world for the next 10 years. Canada was among the most profoundly affected countries. Goods no longer sold; businesses laid off workers in alarming numbers; family revenues sank; and government aid was insufficient.
Detailed explanation-4: -Known as Black Thursday, the crash was preceded by a period of phenomenal growth and speculative expansion. A glut of supply and dissipating demand helped lead to the economic downturn as producers could no longer readily sell their products.