Ch 18.1 PPT

Multiple Choice

Who won the 1928 presidential election, and what was a key advantage cited for their party?

• Herbert Hoover, years of prosperity under Republican leadership

• Alfred Smith, years of prosperity under Democratic leadership

• Herbert Hoover, support from southern states

• Alfred Smith, support from western states

Open Ended

Explain how the concept of a 'bull market' influenced American attitudes toward investing in the stock market during the 1920s.

Multiple Choice

What is the effect of a bull market on stock prices?

• Stock prices fall

• Stock prices remain stable

• Stock prices rise

• Stock prices become unpredictable

Multiple Choice

What typically drives a bull market?

• Negative economic news

• Positive news about the economy

• Political instability

• Natural disasters

Multiple Choice

If you own a share of a stock,

• you are part owner of that company.

• you can run the company.

• you can hire and fire people to work at the company.

• you have an office at the company.

Multiple Choice

Ignoring risks, buying stocks and bonds to make a quick profit

• Speculation

• Black Tuesday

• Buying of the margin

• Bull Market

Multiple Choice

Paying a small percentage of a stock's price as a down payment and borrowing the rest.

• Speculation

• Buying on the margin

• Black Tuesday

• Bull Market

Multiple Select

Which of the following statements about buying stocks on margin in the 1920s are correct? (3)

• It involved paying only a small percentage of the stock price upfront.

• It was considered safe as long as stock prices continued to rise.

• It required investors to pay the full price of stocks in cash.

• It contributed to speculation in the stock market.

Open Ended

Describe the sequence of events that led from the prosperity of the 1920s to the Great Crash of 1929, using evidence from the slides.

Multiple Choice

What was one major factor that led to the end of the bull market in 1929?

• A lack of new investors entering the stock market

• A sudden increase in company profits

• A decrease in speculation

• A rise in stock prices

Multiple Choice

One effect of Black Tuesday

• Investors acquired huge amounts of debt

• Investors acquired huge amounts of wealth

• Investors amount of wealth did not change

• Investors amount of debt was minimal

Multiple Choice

What day did the Stock Market ultimately crash?

• October 29, 1929

• December 29, 1929

• April 29,1929

• November 29,1929

Multiple Choice

What event is referred to as 'Black Tuesday' in the context of the Great Stock Market Crash of 1929?

• The day the stock market crashed, causing massive financial losses

• The day banks closed across the country

• The day the government introduced new economic policies

• The day the market fully recovered

Multiple Select

Which of the following statements about Black Tuesday are correct?

• It occurred on October 29, 1929

• It involved a record number of shares traded

• It marked the beginning of a long economic recovery

• It caused a loss of $10 to $15 billion in stock value

Multiple Choice

Which of the following was a direct consequence of the stock market crash on banks?

• Banks lost money on investments and customers lost deposits

• Banks increased interest rates

• Banks expanded their loan programs

• Banks were unaffected by the crash

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

Overproduction and underconsumption factored into causing the Great Depression by

• causing falling prices on goods.

• forcing a decrease in mechanization.

• leading to more spending than saving.

• scaring farmers into growing fewer crops.

Open Ended

Describe the impact of the stock market crash on ordinary American families and their financial security.

Open Ended

Explain how overproduction and the uneven distribution of wealth contributed to the economic problems leading to the Great Depression.

Multiple Choice

What was one major consequence for farmers after World War I ended?

• Demand and prices for crops increased

• Farmers were able to sell all their crops at a profit

• Demand and prices for crops fell

• Farmers stopped taking out loans

Multiple Select

Which of the following factors contributed to Americans buying less by the late 1920s? (3)

• Rising prices

• Stagnant wages

• Balanced distribution of income

• Overextension of credit

Open Ended

Explain how the installment plan contributed to the economic problems of the late 1920s.

Multiple Choice

A way to buy something by paying some now and then the rest later

• installment plan

• stock exchange

• Public Works

• welfare

Multiple Choice

What was the effect of the Hawley-Smoot Tariff during the Great Depression?

• It lowered the cost of imports for Americans

• It increased American exports overseas

• It intensified the Depression by raising the tax on imports

• It encouraged Americans to buy more foreign goods