The Great Depression Begins - Unit 7

Multiple Choice

What was one key economic warning sign during the Roaring Twenties that indicated underlying problems in the economy?

• Rising national income

• Installment plans making purchasing easier

• Sick industries such as textiles, coal, lumber, and railroads

• Increasing consumer spending

Multiple Select

Which of the following were consequences faced by farmers during the agricultural crisis of the 1920s?

• Bank foreclosures

• Massive farm auctions

• Increasing rural poverty

• Rising farm income

Multiple Select

What are the risks associated with buying stocks on margin?

• Potential for high returns

• Losses can exceed initial investment

• Guaranteed profits

• Stock prices always rise

Multiple Choice

What was a major consequence of the 'run on the banks' during the Great Depression?

• Banks were able to lend more money

• Banks failed because they couldn't cover withdrawals

• Citizens invested more in the stock market

• Unemployment decreased

Multiple Select

What were some unintended consequences of the Smoot-Hawley Tariff?

• Boosted American exports

• Reduced international trade

• Other countries raised retaliatory tariffs

• Increased agricultural production