Question

How did the Withdrawal of US loans during the phase of the Great Depression affect the rest of the World ?Explain in three points.

Answer 1

Withdrawal of US loans affected different countries of the world in the following manner during the phase of great depression:

(i) Europe: It led to the failure of some major banks and the collapse of currencies such as British pound sterling.

(ii) Latin America: Here, it intensified the slump in agriculture and raw material prices.

(iii) US: US attempted to protect its economy in the depression by doubling import duties, also dealt with another severe blow to the world trade.

Answer 2

Explanation:

1. EUROPE : it led to the failure of some major banks and the collapse of curriencies such as british pound sterling

2. LATIN AMERICA : here it intensified the slump in agriculture and raw material prices

3. US : US attempted to protect its economy in the Depression by doubling import duties , also dealt with another severe blow to world trade