1Share market collapse Banks and industries 2Reconstruction Finance Corporation Loans 3Economic Depression License to stock exchange 4Federal Reserve Bank Compensation to formers 5The Security Exchange Act Speculation on borrowed money 1929
Answers
Assuming that the question is referring to the great economic depression (popularly known as The Great Depression) of 1930s, the answers are as follows:
1. The entire economic disaster started with the crash of market due to extreme depression. Due to the crash of share market, the investors and capitalists lost their money heavily because of which the industries were affected heavily. The banks had also invested common people’s money in share market. Therefore, it directly affected the common people who had not ever invested in share market .
2. The Reconstruction Finance Corporation (RFC) was a government corporation active during the era of Great Depression whose main purpose was to lend loans to state and local government bodies who were affected by the economic crisis. The main reason behind the establishment of the Reconstruction Finance Corporation was to help the country recuperate from the economic crisis.
3. Question is irrelevant
4. The stock market crash during the Great Depression was actually due to the sharp deflation in the market. Due to it, the prices went so low that many farmers went bankrupt and were unable to continue their livelihood. As a recuperative measure, the Federal Reserve Bank lent them loans to help in the smooth running of national economy.
5. Security Exchange Act was an act which was enacted in 1934 to regulate the trading of securities (stocks bonds and debentures) in order to prevent conditions like the great depression of 1929.