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1. Did the stock market crash cause the Great Depression? Explain.
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second paragraph would help you out a bit. http://www.investopedia.com/articles/economics/08/cause-of-great-depression.asp
Yes, - Within the 1920s, it became to a crucial point to where banks began to loan money to stock-buyers, all because stocks were the hottest commodity in the marketplace. The stocks themselves used as collateral. - If stocks dropped in value, investors could not repay banks, banks would be left holding near-worthless collateral. Banks would then go broke, pulling productive business down with them as they called in loans and foreclosed mortgages in a desperate attempt to stay afloat.
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