1920's Causes of the Great Depression

1920's Economy: Causes of the Great Depression

S.T.U.P.I.D.

Open Ended

Explain to me the purpose of shares/stocks.

Open Ended

Make a connection, WWI, loans, & farmers.

Multiple Choice

What was one cause of the stock market crash of 1929 and the Great Depression?

• Low farm production had weakened banks

• Speculators had purchased shares of stock on margin

• Federal tax cuts had caused prices to rise

• Costs associated with World War I had bankrupted the economy

Multiple Choice

When investors bought stock worth $10,000 with only a personal investment of $1,000 while borrowing the rest from the bank.

• inflation

• margin call

• speculation

• buying on margin

Multiple Choice

During the stock market crash of October 1929, prices were driven down by

• the government intervening in the market

• investors selling stocks at a frenzied pace

• companies being forced out of business

• banks being forced out of business

Open Ended

What is the purpose of a tariff?

Open Ended

What is the purpose of a tariff?

Multiple Choice

As stock prices declined in 1929, the Hawley-Smoot Tariff led to

• the growth of U.S. industry

• a decline in U.S. exports

• less competition for U.S. business

• an increase in U.S. imports

Multiple Choice

One reason that the stock market crash led to the Great Depression was that in 1929, the top 5 percent of all American households earned 30 percent of the nation's income, this is an example of

• a bull market

• a recession

• an uneven distribution of income

• overproduction

Open Ended

Explain to me what was happening to the banks.

Multiple Choice

During the Great Depression, when a bank collapsed

• depositors were repaid because their accounts were insured

• the government stepped in to run the bank

• depositors lost their savings

• the government covered the banks debt

Multiple Choice

What happened to a large number of banks in the United States during this time period?

• little to no affect, banks stayed open

• banks had protected the money and all of their depositors

• because of bad practices banks had to pay a fine

• banks ran out of depositors money and went bankrupt

Open Ended

Explain supply & demand in reference to pricing.

Multiple Choice

In addition to the stock market crash in 1929, a key cause of the Great Depression was

• deflation

• overproduction

• overconsumption

• inflation

Multiple Choice

During the Great Depression, many farmers were forced to turn their farms over to

• nonpaying tenants

• court officers

• government agencies

• banks that held their mortgages

Multiple Choice

Which of the following trends set the stage for the Great Depression?

• Americans building up to much personal debt

• Banks being overly cautious with loans

• Americans refusing to purchase stocks

• A lack of developed farm land in the Midwest and Great Plains