USA HISTORY

Detailed explanation-1: -The main cause of the Wall Street crash of 1929 was the long period of speculation that preceded it, during which millions of people invested their savings or borrowed money to buy stocks, pushing prices to unsustainable levels.

Detailed explanation-2: -The Government Raised Interest Rates Some experts say this steep, sudden hike cooled investor enthusiasm, which affected market stability and sharply reduced economic growth. Another factor was an ongoing agricultural recession: Farmers struggled to make an annual profit to keep their businesses afloat.

Detailed explanation-3: -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-4: -This meant that many investors who had traded on margin were forced to sell off their stocks to pay back their loans – when millions of people were trying to sell stocks at the same time with very few buyers, it caused the prices to fall even more, leading to a bigger stock market crash.