Great Depression Causes

How did the stock market crash of 1929 contribute to the Great Depression?

• After the crash, wealthy people took the money they had and moved abroad.

• The crash left the economy too weak to overcome bigger challenges.

• The poor had invested heavily in the stock market and lost whatever money they had.

• Wall Street traders lost their jobs, creating massive unemployment.

How did an economic recession help cause the Great Depression?

• Americans bought less, causing less demand for goods

• Bank runs caused depositors to withdraw all their money from banks

• The market bubble popped, crashing Wall Street

• Low interest rates encouraged risky speculation

What forced banks to close during the Great Depression?

• Huge amounts of inflation

• War in Europe

• Investors unable to pay loans and bank runs

• Not enough people invested in the Stock Market

Who was president when the stock market crashed?

• Theodore Roosevelt

• Woodrow Wilson

• Herbert Hoover

• Franklin Delano Roosevelt

Which of the following is NOT one of the "Root Causes" of the Great Depression?

• Uneven distribution of income

• Credit and excessive debt

• Mistakes by the Federal Reserves (National Banks)

• WWI

After the Stock Market Crash, many people lost their life savings because _______________.

• banks closed
• banks gave away their money
• they couldn't remember where they put it
• someone stole it

Which of the following is a term for buying something now and paying for it later?

• Credit 
• Debit
• Speculation 
• Investment 

During the Stock Market crasch of 1929,

• investors quickly bought more stocks to ensure a profit.

• stock prices fell, causing billions of dollars to be lost.

• stores hired more employees to capitalize on consumer demand.

• banks loaned money to homeowners to cover their mortgages.

Overproduction and underconsumption factored into causing the Great Depression by

• causing falling prices on goods.

• forcing a decrease in mechanization.

• leading to more spending than saving.

• scaring farmers into growing fewer crops.

What caused many farmers to foreclose on their farms in the 1930s?

• Growing too few crops

• Overproduction of crops and costs of machines

• Expensive land and not enough workers

• The Wall Street Crash