VUS.10b&c Stock Market Crash & Great Depression

VUS.10b&c Stock Market Crash & Great Depression

Multiple Choice

Buying stock on margin refers to -

• borrowing money to buy stock

• only buying stock with a marginal chance of returning a profit

• buying stock on the outside of normal society

• allowing people to buy more stock than they can afford

Multiple Choice

Overspeculation of investments, excessive expansion of credit, business failures, and bankruptcies all contributed to:

• the Stock Market Crash of 1929

• The Open Door Policy

• Taft's policy of Dollar Diplomacy

• The Spanish-American War

Multiple Choice

Which statement best describes how investment in the stock market during the mid-to-late 1920s contributed to the Great Depression?

• People were unable to repay the loans used to purchase stocks.

• Government taxes on stock transactions made it difficult to repay investors.

• Financial institutions were not required to report earnings to stock investors.

• Foreign countries were not required to immediately pay stockholder earnings.

Multiple Select

Which of the following was NOT a result of the Stock Market Crash

• People suffered financial ruin, and many committed suicide.

• Too many new banks

• Bank Runs

• No new investments

Multiple Choice

What year did the stock market crash?

• 1800

• 1929

• 1945

• 1982

Multiple Choice

True or False? When the market collapsed, banks did not run out of money

• False

• True

Multiple Choice

TRUE or FALSE: The Stock Market Crash of 1929 caused the Great Depression?

• True

• False

Causes of the Great Depression - Agriculture

In addition to the finaincial hardships faced by farmers in the 1920s, overfarming of the land created a situation called The DUST BOWL - a major drought allowed dust storms to sweep across the Plains - destroying farms and lives.

Multiple Choice

All of the following were causes of the Great Depression EXCEPT -

• prohibition

• overproduction of farm goods and industrial goods

• unequal distribution of wealth

• high tariffs

• bank failures

Multiple Choice

During the 1930s, poor land management and severe drought conditions across parts of the Midwest resulted in the

• formation of the United States Department of Agriculture

• creation of wheat surpluses

• growth of the Populist movement

• development of Dust Bowl conditions on the Great Plains

What does the Federal Reserve do?

• Controls the money supply with monetary policy.

• Regulates financial institutions.

• Manages regional and national check-clearing procedures.

• Supervises the federal deposit insurance of commercial banks in the Federal Reserve system. (AFTER the New Deal)

Multiple Choice

How did the failures of the Federal Reserve system contribute to the causes of the Great Depression?

• it caused the money supply to grow

• it did not pay insurance premiums

• it failed to repay loans to its member banks

• it caused a contraction of the money supply

Multiple Choice

How did the Smoot-Hawley Tariff of 1930 contribute to the causes of the Great Depression?

• it caused banks to collapse

• it made import goods too expensive forcing other nations to raise tariffs on the US

• it made import goods too cheap causing Americans to stop buying domestic goods

• it forced Americans to pay higher taxes when they had little money

Multiple Choice

Veterans of this conflict were owed bonus pay for their service.

• World War I

• World War II

• Gulf War

• Civil War

Multiple Choice

During the early 1930s, the main goal of the Bonus Army was to pressure the Hoover administration to

• strengthen the nation’s defenses

• end the military draft

• bring American troops home from overseas

• support the early payment of money promised to veterans

Multiple Choice

Which of the following was NOT an effect of the Great Depression?

• unemployment & homelessness

• bank failures

• high tariffs

• farm foreclosures

• political unrest