Question

In 3–5 sentences, explain 2 causes and 2 effects of the stock market crash of 1929. In your own words.

Answer 1

Answer:I know it’s long but hope it helps!

Explanation: production had already declined and unemployment had risen,leaving stocks in great excess of their real value,among the other causes of the eventual market collapse were low wages,the proliferation of debt,a struggling agricultural sector and an excess of large bank loans that could not be liquidated.

Many people believe erroneously that the stock market crash that occurred on Black Tuesday,October 29 1929 is one and the same with the Great Depression.in fact, it was one of the major causes that led to the Great Depression

The effects:

It did act to accelerate the global economic collapse of which it was also a symptom.By 1933 ,nearly half of America’s banks had failed ,and unemployment was approaching 15 million people, or 30 percent of the workforce.....

Answer 2

Answer:

Causes :

Many factors likely contributed to the collapse of the stock market. Among the more prominent causes were the period of rampant speculation (those who had bought stocks on margin not only lost the value of their investment, they also owed money to the entities that had granted the loans for the stock purchases), tightening of credit by the Federal Reserve (in August 1929 the discount rate was raised from 5 percent to 6 percent), the proliferation of holding companies and investment trusts (which tended to create debt), a multitude of large bank loans that could not be liquidated, and an economic recession that had begun earlier in the summer.

Effects:

The stock market crash of 1929 was not the sole cause of the Great Depression, but it did act to accelerate the global economic collapse of which it was also a symptom. By 1933, nearly half of America's banks had failed, and unemployment was approaching 15 million people, or 30 percent of the workforce.