USA HISTORY

Detailed explanation-1: -Causes of Great Depression Tight monetary policies adopted by the Central Bank of America. Stock market crash of 1929. The failure of banks, which was the impact of the stock market crash as more people withdrew their savings from the banks leading to closure. Reduction in purchases due to diminished savings.

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: -In October, 1929, the bubble burst, and in less than a week, the market dropped by almost half of its recent record highs. Billions of dollars were lost, and thousands of investors were ruined. After the stock market crash, President Hoover sought to prevent panic from spreading throughout the economy.

Detailed explanation-4: -By 1931 however, the effects of the Great Depression began to badly impact the Chinese economy, a problem compounded further by Japan’s invasion and occupation of Manchuria in the same year. Consequently, China’s overall GDP, dropped to 28.8 billion in 1932.