Causes of the Great Depression

What is the impact of tariffs on world trade during the Great Depression?

• Decreased trade opportunities

• Increased trade opportunities

• Trade remained stable

• No impact on trade

Answer explanation

During the Great Depression, tariffs led to decreased trade opportunities, impacting world trade negatively.

What was the characteristic of economic and social conditions during the Great Depression?

• Low GDP and high unemployment

• High GDP and low unemployment

• High GDP and high unemployment

• Low GDP and low unemployment

Answer explanation

During the Great Depression, economic and social conditions were characterized by low GDP and high unemployment.

How did the Great Depression affect the farming industry?

• No impact on farming

• Steady decline in crop prices

• Decreased demand for crops

• Increased profits for farmers

Answer explanation

The Great Depression caused a steady decline in crop prices, leading to significant challenges for the farming industry.

What was the main cause of bank failures during the Great Depression?

• Stable economy

• Government regulations

• Risky investment behavior

• High consumer demand

Answer explanation

The main cause of bank failures during the Great Depression was risky investment behavior, which led to financial instability and loss of public trust in the banking system.

What was the impact of stock market crashes on businesses?

• Increased profits for businesses

• Decreased reserve wealth for businesses

• Stable market conditions

• No impact on businesses

Answer explanation

Stock market crashes have a negative impact on businesses, leading to decreased reserve wealth.

What was the main factor contributing to the shrinking of the national economy during the Great Depression?

• Bank failures

• Low unemployment rates

• High consumer demand

• Stable GDP

Answer explanation

The main factor contributing to the shrinking of the national economy during the Great Depression was bank failures. This led to a decrease in available credit, causing businesses to close and unemployment rates to rise.

What was the impact of bad monetary policies on the money supply?

• Decreased money supply

• Increased money supply

• No impact on money supply

• Stable money supply

Answer explanation

Bad monetary policies can lead to a decreased money supply, affecting the economy negatively.

What led to the crash of the stock market in 1929?

• Overspeculation and credit issues

• Decreased demand for goods

• Rapid consumer product growth

• Stable market conditions

Answer explanation

The crash of the stock market in 1929 was primarily caused by overspeculation and credit issues, leading to a significant decrease in stock prices and widespread financial instability.

What was the impact of farming failures on rural areas?

• Increased poverty and homelessness

• Stable economic conditions

• Decreased unemployment rates

• No impact on rural areas

Answer explanation

Farming failures led to increased poverty and homelessness in rural areas.

What was the main cause of the long-term period of economic decline during the Great Depression?

• Stable economic conditions

• Lower average wealth

• Drop in GDP

• Rise in unemployment rates

Answer explanation

The main cause of the long-term economic decline during the Great Depression was the drop in GDP.