Causes of the Great Depression

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

• overproduction and underconsumption

• a decrease in the supply of consumer goods

• an increase in demand for imported products

• an increase in the price of wheat on the world market

What effect did the Great Depression have on the American economy?

• It led to high unemployment and underproduction.

• It brougth about large business investments and low taxes.

• It created too much money in cirulation and high stock prices.

• It increased employment and real estate vaules

What happened to a large number of the banks in the United States during this time period?

• banks stayed open

• banks were shut down

• banks had to pay a fine

• banks were destroyed by riots

Which of the following statements best describes what happened on Black Tuesday?

• Stock prices fell and the stock market crashed.

• Bank runs forced many banks to close their doors.

• Federal troops attacked the Bonus Army marchers.

• The Supreme Court ruled that the NRA was unconstitutional.

This is the process of taking money borrowed from the bank or a broker, and putting it into the stock market

• Buying on Margin

• Speculation

• Buying on Credit

• Overconsumption

A way of borrowing money from a bank or finance company so that you can have what you want and pay for it later

• Speculation 
• Buying on Credit 
• Buying on Margin 
• Overproduction 

When a large number of customers line up to withdraw cash from deposit accounts from a financial institution

• Speculation

• Black Friday

• Bank Run

• Underconsumption

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 was the highest unemployment rate during the Great Depression?

• 10%

• 20%

• 25%

• 30%

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.