The Stock Market Crash Reading (Grade 7 MP4 Week 2)

Front

When lots of people own a company, the business is divided into ____________________

Back

shares

Answer explanation

When many people own a company, it is divided into shares, which represent ownership in the business. This allows multiple individuals to invest and hold a portion of the company.

Front

What year did President Herbert Hoover take office?

Back

1929

Answer explanation

President Herbert Hoover took office on March 4, 1929. Therefore, the correct answer is 1929, as it marks the beginning of his presidency.

Front

The stock market crash of October 29, 1929 is also referred to as -

Back

Black Tuesday

Answer explanation

The stock market crash of October 29, 1929 is known as Black Tuesday. This day marked a significant downturn in the stock market, leading to the Great Depression, distinguishing it from other days like Black Friday or Red Tuesday.

Front

The stock market crash also affected these institutions, many of which closed, causing people to lost their life savings. Options: prisons, banks, schools, hospitals

Back

banks

Answer explanation

The stock market crash primarily impacted banks, leading to closures and loss of life savings for many people. Unlike prisons, schools, or hospitals, banks are directly tied to financial savings and investments.

Front

During which decade did the United States enjoy a time of wealth before the stock market crash? Options: 1910s, 1920s, 1930s, 1940s

Back

1920s

Answer explanation

The 1920s, often called the 'Roaring Twenties', was a period of economic prosperity in the U.S. before the stock market crash of 1929, making it the correct answer to the question.

Front

According to the chart, what was the average stock price per share in 1926?

Back

$100

Answer explanation

The chart indicates that the average stock price per share in 1926 was $100, making it the correct choice among the options provided.

Front

In what year did the average stock price reach its peak?

Back

1928

Answer explanation

The average stock price peaked in 1928, just before the Great Depression. This year is significant as it marked the height of the stock market boom, making it the correct answer.

Front

Which year marked the beginning of the stock market recovery?

Back

1932

Answer explanation

The stock market recovery began in 1932, following the Great Depression's severe downturn. This year marked the first significant gains after the market crash of 1929, indicating a turning point in economic recovery.

Front

The Great Depression lasted until -

Back

The early 1940's

Answer explanation

The Great Depression is generally considered to have lasted until the early 1940's, as the economic recovery began with the onset of World War II, which significantly boosted industrial production and employment.

Front

Which financial institution was established in 1933 to restore trust in the American banking system?

Back

The Federal Deposit Insurance Corporation (FDIC)

Answer explanation

The Federal Deposit Insurance Corporation (FDIC) was established in 1933 to restore trust in the American banking system by insuring deposits, thus protecting depositors and stabilizing the banking sector.