Chapter 9 TEST REVIEW

Who was president at the time of the Stock Market Crash?

• Abraham Lincoln
• Franklin D. Roosevelt
• Theodore Roosevelt
• Herbert Hoover

A Bull Market represents stocks that are

• continually declining

• being sold at a rapid pace

• continually rising and being bought

• all of the answers

A bear market symbolizes a market that is

• increasing and people are buying stocks

• decreasing and people are selling off their stocks

• staying the same

• all of the answers

When customers rushed to the banks to take out their money in the panic of the crash, they found

• that banks didn't have enough money to give them.

• that the line was too long and they went home.

• that bankers were using an assembly line to distribute their money.

• that the banks doors were locked and they couldn't get in.

Which of the following best describes the economy during the majority of the 1920’s?

• Booming

• Faltering since WWI

• Sharply declining for years

• Experiencing dramatic ups and downs

Which factor contributed to the trend shown on this graph?

• low confidence in the stock market

• low demand for stocks

• strict government regulation of the stock market

• buying of stocks on margin

In the fall of 1929, a wave of panic selling gripped the stock market as a result of

• Government limits on speculation

• Business failures

• Corruption among stockbrokers

• A sudden fall in stock prices

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 

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

• Overproduction 
• Underconsumption 
• Buying on Credit 
• Stock Speculation