Question

QUESTION 1

What was one cause of the Great Depression?

high tariffs overseas

government’s failure to act


limits on farm production

a banking crisis
3 points

QUESTION 2

Which was a cause of the stock market crash in 1929?



Banks refused to lend investors the money they needed to keep buying stocks.

Investors bought stocks on credit because they thought prices would continue rising.

Too few investors were willing to purchase a wide range of stocks.

Too many investors tried to get in on buying the best stocks.

Answer 1

Answer: One of the causes of the Great Depression was the bank crisis and failures as a result of failing farms and an inability to repay debt

The reason for the Stock Market crash was B, buying stocks on credit.

Explanation: Many people who invested in stocks bought them on margin, taking loans that would be paid back with future earnings. Sadly, the economy contracted and earnings disappeared causing a bust.