Which of the following was the immediate factor for the Great Depression (1929-1932)?
(a) Collapse of Wall Street Exchange
(b) Financial Impact of World War I
(c) Fall in US exports
(d) Collapse of banks
(e)None of the above
Answers
Answer :
(A) Collapse of Wall Street Exchange
Explanation :
The immediate factor for the Great Depression (1929-1932) was the collapse of the Wall Street Exchange, also known as the Stock Market Crash of 1929. On October 29, 1929, the stock market experienced a sudden and sharp decline, with the Dow Jones Industrial Average losing nearly 13% of its value in a single day. This event was the catalyst for the Great Depression, which lasted for several years and had widespread effects on the global economy.
The stock market crash led to a panic among investors, who rushed to sell their stocks and liquidate their investments. This selling pressure caused a downward spiral in stock prices, leading to a loss of confidence in the economy and a sharp decline in consumer spending and investment. The depression was further exacerbated by the fall in US exports and the collapse of many banks, which led to a contraction in the money supply and a decline in economic activity.
The Great Depression had far-reaching consequences and is considered one of the worst economic crises in modern history. The event prompted governments around the world to introduce reforms to regulate financial markets and prevent similar events from occurring in the future.
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Answer:
The correct option is (a) Collapse of Wall Street Exchange
Explanation:
The 1929 Wall Street Crash was the largest stock market disaster in American history. It happened on Tuesday, October 29, 1929, on the New York Stock Exchange, which is now known as Black Tuesday. Bank failures followed, causing businesses to close, kicking off the Great Depression.
The Great Depression had far-reaching ramifications and is often regarded as one of the worst economic disasters in contemporary history. The occurrence pushed governments around the world to implement changes to regulate financial markets and prevent similar occurrences in the future.
- The 1929 stock market crash, the collapse of world trade due to the Smoot-Hawley Tariff, government policies, bank failures and panics, and the collapse of the money supply are all potential causes of the Great Depression.
Therefore, Collapse of Wall Street Exchange is a correct answer.
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