Question

which factor was a major cause of the great depression of the 1930s? a. farmers raising crop prices with the creation of the federal farm marketing board in 1930 b. high protective tariff rates brought on by the mckinley tariff of 1890 c. excessive borrowing to buy stocks leading to the stock market crash of 1929

Explanation:

• Option A is incorrect: The Federal Farm Marketing Board was created to support crop prices, but it was not a major cause of the Great Depression; in fact, it was a response to pre-depression agricultural struggles.
• Option B is incorrect: The McKinley Tariff of 1890 was decades before the Great Depression and not a contributing factor. The relevant tariff was the Smoot-Hawley Tariff of 1930, which exacerbated the depression, not the 1890 tariff.
• Option C is correct: Widespread margin buying (excessive borrowing to purchase stocks) created an unsustainable bubble in the stock market. When the market crashed in 1929, this triggered a chain reaction of bank failures, loss of wealth, and reduced consumer spending that was a major catalyst for the Great Depression.

Answer:

C. excessive borrowing to buy stocks leading to the stock market crash of 1929