Question : Analyse any two factors that were responsible for the Great Depression in America during 1929.
The correct answer is-
i. Agricultural overproduction remained a problem and it was made worse by falling agricultural prices.
ii. As prices slumped and agricultural incomes declined, farmers tried to expand production and bring a larger volume of produce to the market but it pushed down prices.
iii. In the mid-1920s, many countries financed their investments through loans from the US, it was extremely easy to raise loans in the US when the going was good.
iv. But in the first half of 1928 countries that depended crucially on US loan faced an acute crisis.
v. The withdrawal of US loans affected the rest of the world in different ways In Europe it led to the failure of small major banks and the collapse of currencies such as the British pound sterling.
vi. Any other relevant point
