Chp 18 Review

In the 1920s, buying on margin was a method of buying stocks with mostly borrowed money.

• True

• False

The stock market crash of 1929 was the sole cause of the Great Depression.

• True

• False

Buyers hoping to make a fortune overnight in the stock market engaged in speculation, betting that the market would continue to climb.

• True

• False

Blaming the president for their plight, newly homeless people established shantytowns they called Hoovervilles.

• True

• False

President Hoover did more than any prior president to expand the federal government’s economic role, but he failed to resolve the economic crisis of the Great Depression.

• True

• False

In the 1920s, the Federal Reserve contributed to weaknesses in the stock market by

• lending to foreign companies.

•   

  lending to speculators.

• keeping interest rates low.

A long period of rising stock prices is known as a

• recession

• bull market

• speculation

One reason that the stock market crash led to the Great Depression was that in 1929, the top 5 percent of all American households earned 30 percent of the nation’s income, an example of

• an uneven distribution of income

• overproduction

• recession

During the Great Depression, many farmers were forced to turn their farms over to

• court officers.

• banks that held their mortgages.

• government agencies.

Thousands of World War I veterans came to Washington, D.C., in 1932 to lobby Congress to

• provide military jobs for unemployed veterans.

• enact a bonus for war veterans and their families.

• pass legislation giving veterans their promised bonuses early.