9-1 Quiz

Causing the Great Depression--5% of all Amer earned 30% of nation's income-an example of what?

• a bull market

• a recession

• an uneven distribution of income

• overproduction

In the 1920s, how did the Federal Reserve contribute to weaknesses in the stock market?

• keeping interest rates low

• lending to foreign companies

• lending to speculators

• speculating on market interest rates

The bull market of the 1920s lasted only as long as what conditions existed?

• banks continued to invest in stocks

• investors continued putting new money into the market

• the federal reserve continued to lower interest rates

• stockbrokers continued to make loans to investors

What is a long period of rising stock prices known as?

• bank run

• bull market

• foreclosure

• margin call

During the stock market crash of October 1929, what drove down the stock prices?

• banks being forced to close

• companies being forced out of business

• the government intervening in the market

• investors selling stocks at a frenzied pace

As stock prices declined in 1929, what did the Hawley-Smoot Tariff lead to?

• a decline in US exports

• the growth of US industry

• an increase in US imports

• less competition for US businesses

Aside from the stock market crash, what was another key cause of the Great Depression?

• deflation

• overproduction

• inflation

• overconsumption

What happened during the Great Depression, when a bank collapsed?

• depositors lost their savings

• depositors were repaid if their accounts were insured

• the government stepped in to run the bank

In addition to the stock market crash of 1929, the economy was shaken by a slowdown in what?

• farm production

• mortgages

• retail sales

• tariff rates

Before the late 1920s, stock prices___.

• did not change much

• generally reflected the stocks' true value

• had little to do with the economy

• were too high for most people to afford