Final answer:
Explanation of causes and effects of the Stock Market Crash of 1929.
Explanation:
Causes of the Stock Market Crash:
- Investors made high-risk purchases, often using low down payments.
- Low interest rates and a high money supply encouraged risky investments.
- Banks demanded immediate payment for loans they had given to investors.
Effects of the Stock Market Crash:
- In one year, the stock market lost more than half its value.
- The crash led to bank failures and caused many Americans to lose their life savings as well as their jobs.
- Investors who had bought stock with borrowed money faced bankruptcy as stock prices fell.
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