Why Did the U

question 49

Multiple Choice

Why did the U.S. stock market crash lead to a global economic depression?

• A) The United States was unable to pay its war debts to European nations, which led to widespread economic collapse.
• B) American lenders called in their international debts, which undermined banks and industry abroad.
• C) American banks had borrowed so heavily from foreign lenders that the crash destabilized foreign currencies.
• D) Most foreign companies traded their stock on the U.S. market, so they became weak and unstable.