Causes of the Great Depresssion

Open Ended

List as many Causes of the Great Depression as you can remember from our in class readings!

Multiple Select

Based on TEK 16 C, What were the effects of the Great Depression on the U.S. economy and society?

• Widespread unemployment

• Deportation of people of Mexican heritage

• Repatriation of people of Mexican heritage

• Economic growth

The weak economy of the *________________ was characterized by widespread unemployment, business failures, and homelessness.

Open Ended

Describe the living conditions of people during the Great Depression as depicted in the images.

• Investors used their savings and bought stocks on the margin (with borrowed money). 

Effects of speculation:  This made the price of stocks artificially high, encouraging people to buy more stocks.  When the prices of stocks dropped, people lost their savings and could not pay back the money they borrowed.

Multiple Choice

What does the cartoon about Wall Street suggest about investor behavior during periods of over-speculation?

• Investors are cautious and pull their money out to be safe

• Investors are excited and hopeful to earn gains

• Investors are indifferent and didn't care

• Investors are confused and invest more money

Multiple Choice

How did buying stocks on margin contribute to the stock market crash during the Great Depression?

• It encouraged people to save more money in banks.

• It allowed investors to buy stocks without any risk.

• It led to increased investment in real estate and bonds.

• It caused stock prices to rise artificially, and when prices fell, investors lost their savings and couldn’t repay loans.

the stock market crashed on Black Tuesday, October 29th; this event marks the beginning of the Great Depression

Multiple Choice

What significant event is represented by the term 'Black Tuesday'?

• The stock market crash of 1929

• The Great Depression

• The end of World War I

• The beginning of the Roaring Twenties

Bankers unwisely speculated with their customers’ money in the stock market and gave loans to people with poor credit. 

Effects of bank failures  Many banks closed when the stock market crashed or when their customers who were unemployed could not pay back their banks loans

​All of a bank’s customers would withdraw their money at once because they feared the bank would close.

Effects of bank runs: The massive withdrawal of money made the banks close.

Many people lost their life’s savings when their banks closed!

Multiple Choice

This Image is used to describe:

• The failure of banks, causing people to lose their life savings
• How irresponsible people were with their money in the 20s
• How overspending had caused an economic collapse
• That buying on credit caused the stock market to crash

Multiple Choice

The United States places a 20% tariff on all imported cars. Which of the following best describes the intent of this policy?

• It will help American workers and producers, but raise prices for American consumers

• It will harm American workers and producers, and raise prices for American consumers

• It will harm American workers and producers, and lower prices for American consumers

• None of these answers are correct

The “Fed” made credit (the borrowing of money)  too easy by lowering interest rates which helped to fuel stock market speculation.

Effects of interest rates: In the 1930’s it raised interest rates, making it hard for businesses to get loans

Effects on banks:  Federal Reserve did not loan money to banks - allowing many banks to fail.

Multiple Choice

What are the consequences of the Federal Reserve's poor monetary policy?

• Increased inflation

• Decreased unemployment

• Economic stability

• Higher interest rates

Multiple Choice

Which of these best describes the Federal Reserve System (the Fed)?

• It is a mostly independent agency that supervises and manages the financial system.

• It is the agency through which Congress supervises and manages the financial system

• It is the agency through which the judiciary supervises and manages the financial system.

• It is the agency through which the executive branch supervises and manages the financial system.

Multiple Choice

What are the effects of the Federal Reserve's raising or lowering interest rates on the money supply?

• Raising interest rates stabilizes the money supply; lowering interest rates destabilizes it.
• Raising or lowering interest rates has no effect on the money supply.

• Raising interest rates decreases the money supply; lowering interest rates increases the money supply.
• Raising interest rates increases the money supply; lowering interest rates decreases the money supply.

Multiple Choice

Germany had to pay $33 billion dollars in _______________.

• land
• military
• reparations

When people lost their jobs, they could not make payments on installment plans and did not want to buy luxury goods.

Effects of over production: Low demand and mass-production caused prices to drop and businesses to close.

Multiple Choice

What does the term 'overproduction' refer to in the context of the automotive industry as depicted in the image?

• Excessive production of goods

• Balanced production and consumption

• Production of luxury items

• Production of outdated models

Open Ended

How did tariffs, stock market speculation, bank failures, and the Federal Reserve's monetary policy contribute to the onset of the Great Depression?

Multiple Select

What were the main causes of the Great Depression?

• Tariffs on World Trade

• Stock Market Speculation

• Bank Failures

• Monetary Policy of the Federal Reserve

• Underproduction

Multiple Choice

What happened on "Black Tuesday", October 29, 1929 that created the "spark" for the Great Depression?

• Stock Market Crash

• Hitler invades Poland

• Riots break out across America due to poverty

• Banks begin failing and taking money from Americans

Poll

How confident do you feel about this topic now?

• Very confident
• Somewhat confident
• Not confident
• I need to study it all again