The third answer is correct (C).
The Great Depression began with the crash of the New York Stock Exchange in 1929.
The first world war marked the hegemonic transition from England to the United States, which provided inputs, commodities and basic items for warring countries. This led to an economic euphoria in the 1920s and big companies started investing in stock market bonds.
The euphoria led to and to overproduction until the market did not absorb more.The companies became indebted and the businessmen began to sell their shares in the financial market, raising their value as a way to raise funds.
In this context, the herd effect took over the market and panic spread. Many people could not sell their stocks and prices plummeted, causing prices to fall and banks and industries went bankrupt.
The stock market crash triggered the onset of the Great Depression of the 1930s
The great depression started in 1929 and it was one of the worst economic depressions that shook the whole world.Further Explanation
One of the major causes of the Great Depression is the crash of the American stock market on October 29, 1929. It was a day that is popularly known as Black Friday.
The crash of the stock market created serious problems for financial institutions and many investors were also wiped out.
During this period, many businesses collapsed, there was a high level of poverty as consumers spending dropped, companies were no longer into production and many workers loss their job.
Also, by 1933, over 15 million Americans were without jobs and almost half of the banks were no longer in business as the majority of the financial institutions collapsed.
Although, the crash of the stock market was one of the major causes of the Great Depression, however, other factors that cause the great depression include:Bank failuresLoss of exportsA decline in demand and purchase of goods and servicesExcess in production of consumers goods
Thus, the Stock market crash triggered the onset of the Great Depression of the 1930s
LEARN MORE:Which event triggered the onset of the great depression of the 1930s Which event triggered the onset of the Great Depression of the 1930s?
KEYWORDS:stock market crashgreat depression1930sunited
The Great Depression lasted from 1929 to 1939 and was the worst economic depression in the history of the United States. Economists and historians point to the stock market crash of October 24, 1929, as the start of the downturn. But the truth is that many things caused the Great Depression, not just one single event
The answer is C. stock market crash