Explain how the US was most severely affected by the worldwide economic depression?
CBSE Class 10
CBSE Class 10 Social
2018-03-06 14:17:01 UTC
With the fall of prices and prospect of depression, US banks also slashed domestic lending.
Farmers could not sell their production, households were ruined and businesses collapsed.
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.
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.