Which factors contributed to the onset of the Great Depression?

The onset of the Great Depression was significantly influenced by the stock market crash and widespread bank failures. The stock market crash of October 1929 marked a pivotal moment, as it not only wiped out billions in wealth but also shattered consumer and investor confidence. Following the crash, many banks, which had invested heavily in the stock market, faced insolvency, resulting in bank failures. This created a ripple effect, leading to a decrease in lending and a contraction in the money supply, which severely impacted consumer spending and business investment. Additionally, as banks collapsed, countless individuals lost their savings, further aggravating economic hardship and contributing to the deepening crisis.

The other factors mentioned in the options do not align with the realities of the period preceding the Great Depression. For instance, technological advancements did not directly facilitate the economic downturn. High consumer spending and low unemployment were characteristics of the Roaring Twenties, but they changed dramatically as the effects of the crash and bank failures took hold. Increased international trade during the 1920s also failed to prevent the economic collapse, as global economic interdependencies became strained in the ensuing crisis. Thus, the combination of the stock market crash and bank failures is recognized as a fundamental cause of the Great Depression.