Question

The stock market crash of 1929 caused a shockwave of economic devastation on the global economy. Which of these events followed the stock market crash?

• A. The American financiers recalled their overseas funds which bankrupted major banks in Germany and England.
• B. The market crash aggravated the withdrawal of American capital across the world.
• C. The volume of American exports increased.
• D. Investors and consumers tried to sell their shares but could not find any buyers.

Answer 1

Answer: (A), (B), (D)

Investors and consumers tried to sell their shares but could not find any buyers.

The slump in the US economy lowered the volume and value of exports going out of the country. After the stock market crash of 1929, investors withdrew American capital from foreign investments and overseas funds at an aggravated pace. It led to the failure of banks across the world. The investors and consumers who were looking to sell their depreciated shares could not find any buyers.