Great Depression Lesson 1

Which statement best describes how investment in the stock market during the mid-to-late 1920s contributed to the Great Depression?

• People were unable to repay the loans used to purchase stocks

• Government taxes on stock transactions made it difficult to repay investors.

• Financial institutions were not required to report earnings to stock investors.

• Foreign countries were not required to immediately pay stockholder earnings.

What was one factor that helped turn the Great Plains into the Dust Bowl in the 1930s?

• Paying farmers to plant native grasses

• Increased demand for tobacco after World War I

• Numerous tornadoes occurring in the region

• Intense drought in the region

Which statement best explains how bank failures contributed to the Great Depression?

• People lost their savings because the government did not insure bank deposits.

• Business could not be done when President Franklin Roosevelt declared a bank holiday.

• The interest rates on bank loans were too high.

• Foreign investors did not invest enough in U.S. banks.

Which headline describes the primary issue faced by the federal government at the onset of the Great Depression?

• Daily News

  Unemployment Rates Reach Record High

• Daily News

  Consumer Price Index B Skyrockets

• Daily News

  Consumer Markets Saturated with Foreign Imports

• Daily News

  Banks Face Oversupply of Currency

Which of the following directly contributed to the economic instability of the United States in 1929?

• The implementation of a personal income tax

• Overspeculation in the stock market

• New regulations on banking

• The elimination of import tariffs