Explain the causes of the Great Depressi | Class 10 Social Science - India an the Contemporary World - II Chapter The Making of a Global World, The Making of a Global World NCERT Solutions

Welcome to the NCERT Solutions for Class 10 Social Science - India an the Contemporary World - II - Chapter The Making of a Global World. This page offers a step-by-step solution to the specific question from Exercise 1, Question 8: . With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.

Question 8:

Explain the causes of the Great Depression.

Answer:

The Great Depression was a result of many factors:

→ Prosperity in the USA during the 1920s created a cycle of higher employment and incomes. It led to rise in consumption and demands. More investment and more employment created tendencies of speculations which led to the Great Depression of 1929 upto the mid-1930s.

→ Stock market crashed in 1929. It created panic among investors and depositors who stopped investing and depositing. As a result, it created a cycle of depreciation.

→ Failure of the banks. Some of the banks closed down when people withdrew all their assets, leaving them unable to invest. Some banks called back loans taken from them at the same dollar rate inspite of the falling value of dollar. It was worsened by British change in policy to value pound at the pre-war value.


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Welcome to the NCERT Solutions for Class 10 Social Science - India an the Contemporary World - II - Chapter . This page offers a step-by-step solution to the specific question from Excercise 1 , Question 8: Explain the causes of the Great Depression.....