"What was the real main cause of the Great Depression in America?
OA weak banking system
O stock market crash
O World War I
O Treaty of Versailles



Answer :

The real main cause of the Great Depression in America was the **stock market crash**. Here's why: 1. **Stock Market Crash**: The most significant event that triggered the Great Depression was the stock market crash of 1929, also known as "Black Tuesday." This crash caused panic selling of stocks, leading to a dramatic decrease in stock prices and wiping out billions of dollars in wealth. 2. **Ripple Effect**: The stock market crash had a domino effect on the economy. It resulted in a severe economic downturn as businesses failed, unemployment soared, consumer spending declined, and industrial production decreased. 3. **Bank Failures**: The stock market crash also exposed the weaknesses in the banking system. Banks had invested heavily in the stock market, and when the market crashed, many banks became insolvent. This led to a wave of bank failures, causing people to lose their savings and further exacerbating the economic crisis. While factors like a weak banking system, World War I, and the Treaty of Versailles did have some impact on the economy, the stock market crash of 1929 stands out as the primary cause of the Great Depression in America.