Unit 6 Review

Which group faced the greatest financial difficulty during the 1920s?

• stock market investors

• industrial workers

• farmers

During the 1920s, the United States economy was in which phase of the business cycle?

• expansion

• contraction

• gutter

Why did the stock market crash?

• Investors panicked and started to sell.

• Depositors made runs on the nation’s banks.

• The Federal Reserve increased the money supply.

Which factor contributed to the spread of the Great Depression overseas?

• an increase in international trade

• a decline in investment from the United States

• the lowering of tariffs in the United States and Europe

A risky stock purchase is known as _____.

• Black Tuesday

• speculation

• business cycle

The periodic growth and contraction of the economy is known as _____.

• Black Tuesday

• speculation

• business cycle

The event of the stock market crash is known as _____.

• Black Tuesday

• speculation

• business cycle

What happened as a result of the Hawley-Smoot Tariff?

• Foreign companies dominated the thriving world market.

• The United States asked for loans from European nations.

• Foreign nations increased their tariffs in response, leading to a decline in trade

Why did so many banks fail at the onset of the Great Depression?

• Too many investors tried to open new accounts.

• Too many depositors tried to withdraw their money all at once.

• The stock market collapsed too slowly to collect on debts.

• The Federal Reserve put too much money into circulation.

A time of economic downturn and high

unemployment between 1929 and 1941

• Black Tuesday

• Great Depression

• Great Recession