Causes of the Great Depression

Borrowing money to pay for something, like an automobile, with the promise that you will pay the money back in the future.

• Speculation

• Buying on Credit

• Buying on Margin

• Overproduction

When the purchase of goods and services is at a lower level then the supply (not enough goods are being purchased by consumers)

• Underconsumption
• Overproduction 
• Speculation 
• Buying on Margin 

This cause of the Great Depression led many businesses to close because they were producing more goods than consumers were willing to buy.

• Overproduction

• Underconsumption

• Buying on Credit

• Stock Speculation

What happened during the "run on banks" after the stock market crash in 1929?

• People rushed to withdraw their money from the banks.

• People rushed to deposit money in the banks

• People rushed to buy stocks from banks.

• People rushed to borrow money from banks.

What was the highest unemployment rate during the Great Depression?

• 10%

• 20%

• 25%

• 30%

Who was president at the beginning of the Great Depression?

• Franklin D. Roosevelt

• Herbert Hoover

• Calvin Coolidge

• Warren Harding

On October 29, 1929 share prices on the New York Stock Exchange completely collapsed and partially caused the Great Depression.

• Black Thursday
• Black Tuesday 
• Black Friday
• Black Sunday 

Tags

CCSS.RF.3.3B

CCSS.RF.3.3C

CCSS.RF.3.3D

CCSS.RF.4.3A

CCSS.RF.5.3A

The Bonus Army incident in 1932 best illustrates the idea that

• President Roosevelt's relief programs were unsuccessful.

• Many Americans felt that Herbert Hoover was not handling the Depression well.

• There was an increase in patriotism and nationalism during the Great Depression.

• The U.S. Army had increased in size and power during the Depression.

Which of the following was a major cause of the Great Depression?

• overproduction and underconsumption

• a decrease in the supply of consumer goods

• low tariffs and free trade policies

• an increase in the price of wheat and other farm goods

What was the main reason for the emergence of “Hoovervilles” like the one shown in the photograph?

• Many Americans had lost jobs during the Great Depression.
• Thousands of homes had been destroyed by the effects of the Dust Bowl.
• Housing projects could not keep up with the demand for homes needed by the poor.
• Preparations for World War I had created a shortage of building materials.