Causes of the Great Depression

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.

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 

This is the idea that the rich become richer, while the poor become poorer

• Black Tuesday 
• Speculation 
• Unequal distribution of wealth
• Buying on Credit 

This is making a very risky investment in the stock market, in hopes of earning a large profit

• Speculation 
• Buying on Margin 
• Bank Run 
• Bull Stock 

A sudden dramatic decline of stock prices, resulting in a significant loss of wealth.

• Bull Market 
• Speculation 
• Bank Run 
• Stock Market Crash 

This cause led many businesses to close, because they were producing more goods than consumers were willing to buy.

• Overproduction 
• Underconsumption 
• Buying on Credit 
• Stock Speculation 

This natural disaster served to worsen the effects of the Great Depression on Farmers in the Midwest

• Tornados

• Dust Bowl

• Black Tuesday

• Hurricanes

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

How did participation in World War I affect U.S. agriculture at the end of the war?

• The United States government offered opportunities for returning veterans in the agricultural sector.

• The agricultural sector increased exports in order to raise profits.

• Overproduction of farm goods during the war led to a collapse in agricultural prices

• The United States government created free trade agreements to increase markets for agricultural products.