9.1 The Great Depression Begins

Main Idea: In 1928 the economy was strong, but the stage was set for a crash.

In the presidential election of 1928, the Republican candidate was _________ and the Democratic candidate was ________ .

• Calvin Coolidge; Woodrow Wilson

• Herbert Hoover; Alfred Smith

• Alfred Smith; Herbert Hoover

• Franklin Roosevelt; Herbert Hoover

Main Idea: In 1928 the economy was strong, but the stage was set for a crash.

The Democratic candidate practiced the ________ religion, which became a campaign issue.

• Catholic

• Jewish

• Mormon

• Buddhist

Main Idea: In 1928 the economy was strong, but the stage was set for a crash.

Rising stock prices, also called a __________ , convinced many people to invest.

• Bear Market

• Mule Market

• Good Market

• Bull Market

Main Idea: During the fall of 1929, stock prices began to decline as investors sensed danger.

By mid-November of 1929, the market price of stocks had dropped about _________ .

• $50 billion

• $30 million

• $100 million

• $30 billion

Main Idea: During the fall of 1929, stock prices began to decline as investors sensed danger

Banks were weakened in two ways: _________ , and they had ________ in the stock market.

• made loans to corporations; invested their own money

• loaned billions to foreign governments; refused to invest

• loaned billions to stock speculators; invested depositors money

• issued too many risky credit cards; invested money they didn't have

Main Idea: During the fall of 1929, stock prices began to decline as investors sensed danger

With less credit available, the economy went into a _______ .

• tailspin

• period of inflation

• recession

• period of economic growth

Main Idea: There were several other causes of the Great Depression.

Many Americans in the 1920s bought high-cost items on the __________________ plan.

• installment

• savings

• coupon

• need-it-now

Main Idea: There were several other causes of the Great Depression.

Because they had to pay off their debts, many Americans stopped ________ . Manufacturers then cut production, causing employees to _______ .

• going out to dinner; have more time at home

• buying new products; lose their jobs

• buying antiques; work less hours

• using credit cards; open their own businesses

Main Idea: There were several other causes of the Great Depression.

The _________ Tariff, meant to protect American businesses, caused _______ American goods to be sold overseas.

• Hawley Smoot; more

• Payne Aldrich; equal

• Payne Aldrich; fewer

• Hawley Smoot; fewer

Main Idea: There were several other causes of the Great Depression.

Low interest rates set by the Federal Reserve encouraged banks to ______ and led business leaders to believe the economy ______ .

• make risky loans; was expanding

• make low risk loans; was crashing

• make easy loans; declining

• make high risk loans; ready to crash