Causes of the Depression: WW1

Question 1

Describe the position of the US following WW1.

Answer 1

Following the First World War the US was the main creditor to foreign powers.

Question 2

What happened as trade reduced?

Answer 2

The debt was not paid back to the US and this greatly affected the financial stability of America.

Question 3

What had the investors done before the economic crisis?

Answer 3

All along, the Americans could not read the danger signs ahead of them and they therefore blindly invested in the stock markets.