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Which best explains why farmers in the great depression could not repay their loans?
It seems that you have missed the necessary choices for this question, but anyway, here is the answer. The statement that best explains why farmers in the great depression could not repay their loans is because the price of crops was too low. During the Great Depression, it was the farmers that suffered so much. Hope this answer helps.
What was the economic effect of the Great Depression on – trombonegoddess16 B. Farmers could not pay taxes or repay money they had borrowed. This happened due to the fact that they had taken out loans to buy tractors and farm equipment, but once the banks failed, they had no way to pay this off.(Answers will vary. Students may say that farmers could not sell their crops or farmers could not repay their loans.) • World War I made it impossible for many European farmers to grow and sell their crops. As a result, U.S. farmers saw a large increase in the demand for their crops. Many U.S. farmers took out loans to expand their operationsThe government did not get involved and let people handle it themselves, there was no dependence on the government. There were so many people that could not repay their loans. Banks failed because the loans could not be paid back. Factories and farms produced way too much product and people could not buy any of it.
PDF The Great Depression Lesson 2 – What Do People Say? – The Great Depression changed the lives of people who lived and farmed on the Great Plains and in turn, changed America. The government programs that helped them to live through the 1930s changed the future of agriculture forever. Weather touched every part of life in the "Dirty 30s": dust, insects, summer heat and winter cold.The personality traits of successful farmers may contribute to proneness for depression. These traits include: willingness to take risks, very high conscientiousness about work, great capacity to persevere in the face of adversity and self-reliance.During the Great Depression, many banks could not or would not borrow from the Federal Reserve because they either lacked acceptable collateral or did not belong to the Federal Reserve System. Starting in 1930, a series of banking panics rocked the U.S. financial system.
Joshua_Guberman_-_Great_Depression.pdf – Black Tuesday the – Farmers pledged their assets as security on the loan. So if a farmer couldn't make the payments on a loan for land, the bank could take back the asset – the land – and sell it to get back their money. In the 1920s, many loans were written when land values and crop prices were high.Millions of farmers defaulted on their debts, placing tremendous pressure on the banking system. Between 1920 and 1929, more than 5,000 of the country's 30,000 banks failed. Because of the banking crisis, thousands of small businesspeople failed because they could not secure loans.Which best explains why farmers in the Great Depression could not ready their loan The price of crops was too high. The price of crops was too low. The price of topsoil was too high. The price of farm equipment was too low.