Causes & Effects of the Great Depression

Causes & Effects of the Great Depression

Unit 6, Week One, Friday

Open Ended

Pick two of the four and explain how they caused the Stock Market to crash in 1929. Speculation, Lending, Roaring Twenties, Buying on Margin.

Multiple Choice

What event valued stocks lower than their worth and caused people to panic, lose their jobs, homes and life savings?

• Black Friday
• Stock Market Crash
• The First Day of School
• The Solar Eclipse

Multiple Choice

An effect of the Great Depression was...

• One-fourth of workers lost their jobs.
• One-fourth of the puppies born that year were German Shepards.
• One-fourth of the stocks were lost forever.
• One-fourth of the farmers became rich.

Multiple Choice

When a large number of customers line up to withdraw cash from deposit accounts from a financial institution

• Speculation 
• Black Friday 
• Bank Run 
• Underconsumption 

Multiple Choice

What happened to many people who saved money in banks?

• They grew rich.

• They made counterfeit money.

• They saved a lot of money.

• They lost everything.

Multiple Choice

How did bank runs contribute to the outbreak of the Great Depression?

• Interest rates on credit caused a spike in debt causing the housing market to collapse

• Banks failed and closed costing people their savings and faith in the banking system

• Injuries caused by riots lead to many to lose their jobs

• The Federal Reserve did not stock banks with enough gold to handle bank runs

Multiple Choice

An effect of the Great Depression was...

• A large number of people were admitted to the hospital.
• A large number of banks and businesses excelled.
• A large number of banks and businesses failed.
• A large number of banks and businesses moved to Canada.

Multiple Choice

When tariffs are added to imported products, what happens to international trade?

• It becomes a new program.

• It stays the same.

• It grows very well.

• It is discouraged.

Multiple Choice

The Federal Reserve could not ________ the money supply. This is because they restricted it.

• Use

• Spend

• Protect

• Save

Multiple Choice

How did the Federal Reserve and the banking system contribute to the outbreak of the Great Depression?

• Regulations on businesses were too tight and stifled growth

• Banks imposed transaction fees on withdrawals causing debt to increase

• New insurance programs lead to massive fraud issues

• Interest rates were too high and too many Americans had large amounts of credit debt

Multiple Choice

How did the Hawley-Smoot Tariff make the Great Depression worse?

• It decreased the price of goods from other countries

• It slowed down international trade when business needed trade

• It caused unregulated banks to fail

• It triggered panics causing future bank runs

Multiple Choice

Which of the following was NOT a way the Hoover tried to fix the economy?

• he founded government agencies

• encouraged labor harmony

• supported local aid

• gave citizens money for aid

Multiple Choice

An effect of the Great Depression was...

• Everyone bought more stocks.

• Large numbers of people were hungry and homeless.

• Farmers became rich.

• Many people moved to the South during the Great Migration South.

Multiple Choice

People who could no longer afford their homes were forced to live in cardboard shacks that they built in public parks. What were these shacks called?

• Shantyshacks

• Town Homes

• Tenement Housing

• Hoovervilles