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.

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 

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

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

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 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 

Which of these describes credit crisis of Great Depression?

• causes Americans to invest in stocks more

• Americans wanted to deposit money in foreign banks

• led to bankruptcies and widespread bank failures

Which thing most likely caused the bank failures at beginning of Great Depression?

• Rich moved money to foreign banks

• President Hoover stopped regulating banks

• Banks used deposits to make risky loans that were never paid back

• Investors stopped buying bank stocks