The main causes of the Great Depression in the U.S. were which of the following? Choose all that apply.

Question

The main causes of the Great Depression in the U.S. were which of the following? Choose all that apply.

Value of companies did not equal the price paid for the stock

Run on the banks

Purchase of consumer durables in prior years, especially in the 1920s

Buying stock on margin (credit)

Reparations payments from WWI

Answer 1

The main causes of the Great Depression in the U.S. included the following:

1. Value of companies did not equal the price paid for the stock - This refers to the stock market speculation and overvaluation leading up to the crash.

2. Run on the banks - Many banks failed as people rushed to withdraw their deposits, contributing to the economic collapse.

3. Buying stock on margin (credit) - Many investors borrowed money to buy stocks, which amplified the market crash when stock prices fell.

The option regarding "Reparations payments from WWI" does not directly contribute to the Great Depression, although it had complex economic effects in Europe. The statement about the "Purchase of consumer durables in prior years, especially in the 1920s" might have some indirect relevance, but it is less commonly cited as a primary cause of the Great Depression compared to the other factors.

Therefore, the best choices are:

• Value of companies did not equal the price paid for the stock
• Run on the banks
• Buying stock on margin (credit)