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ASHA 777 [7]
2 years ago
12

Which of these led to the stock market crash of 1929, and, in turn, helped cause the Great Depression?

History
1 answer:
stealth61 [152]2 years ago
3 0

Answer:

a) buying stock on margin

b) overproduction in agriculture and industry

c) prohibition of alcohol

Explanation:

  • Brokers and businesspeople, fearing the worsening of jammed eateries and speakeasies (a place where alcoholic beverages were illegally sold),
  • Farm and factory overproduction contributed to the Great Depression. During World War I, U.S. farmers produced extra food to feed friends in Europe. The 1920s saw persistent overproduction.
  • On Black Tuesday, October 29, stockholders exchanged 16 million shares and lost $14 billion. A stock market day with 3 million shares was deemed active. People dumped their investments fast, ignoring the loss. Banks, facing debt and wanting to safeguard their assets, sought repayment for investor loans. Those who couldn't pay lost their stocks and money in minutes, but their bank debt remained.

In my research it concludes all the above.

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