USA HISTORY

Detailed explanation-1: -Once prices began their inevitable decline in October 1929, millions of overextended shareholders fell into a panic and rushed to liquidate their holdings, exacerbating the decline and engendering further panic.

Detailed explanation-2: -Essentially, companies could acquire money cheaply due to high share prices and invest in their own production with the requisite optimism. This overproduction eventually led to oversupply in many areas of the market, such as farm crops, steel, and iron.

Detailed explanation-3: -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-4: -First, people who had money invested in the stock market lost much of their savings during the Wall Street Crash of 1929. This caused them to spend less, which created lower demand for goods and services. With businesses seeing a fall in spending, they cut back on output and employed fewer workers.