Answer:
(i) With the fall of
prices and prospect of depression, US banks also slashed domestic lending.
(ii) Farmers could
not sell their production, households were ruined and businesses collapsed.
(iii) With
falling incomes, many households could not repay what they had borrowed and
were forced to give up their homes, cars and other durable items.
(iv) Ultimately, the
US banking system collapsed. Unable to recover investments, collect loans and
repay depositors, thousands of banks went bankrupt and were forced to close.
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