Question

Drag each cause of the Great Depression to the correct category. Use each cause only once.

Answer 1

Answer:

Great depression was the severest downturn of the economy .It lasted for more than 10 years .There was fall in the economy as a whole.There was fall in industrial production,prices,unemployment ,rise in poverty and fall in the performance of banks.

Explanation:

Causes of Great Depression:

1. Stock market crash of 1929:it was one of the major causes that lead to great depression
2. Bank failures:9000 banks failed and people lost their savings
3. Reduction in purchasing:With the crash in the stock market people got scared and their purchasing power reduced a lot.
4. Reduction in production :Less purchasing power of people had a great impact on production.
5. American economic policies with Europe:In order to protect American companies ,new policies were introduced a high tax was charged on imports which reduces trade with other countries.
6. Drought:In 1930 drought occurred in Mississippi.Due to which people were not able to pay the taxes and they had to sell their farms.