Question

Explain any five factors that led to great depression of 1929

Answer 1

Answer:

Causes of Great Depression : (i) Post-world war economy of the world was fragile. Agricultural overproduction was a problem. As prices slumped, farm produce rotted. (ii) Many countries financed loans from the U.S. (iii) U.S. overseas lenders panicked at the sign of financial crisis. (iv) Thus, banks were bankrupt and were forced to close down in Europe and in the US because they were unable to recover investments, collect loans and repay depositors. (v) American capitalists stopped all