Quiz Test - Wall Street Crash of 1929

What was the sentiment on Wall Street for most of the 1920s?

• Fear and uncertainty
• Bullish and optimistic
• Stagnant and unchanging
• Volatile and unpredictable

What innovation of the 1920s is credited with helping to fuel consumer spending?

• The assembly line
• Credit
• The airplane
• The radio

What was the name of the US government bonds sold during World War One to raise money from the public?

• Victory bonds
• Liberty bonds
• Prosperity bonds
• Industrial bonds

What effect did Liberty Bonds have on the American public?

• It created an investing culture in the American public.
• It scared them away from investing altogether.
• It made them more interested in saving money.
• It led to a decrease in the value of the US dollar.

Bonds helped the government raise money from the public, while stocks was used to raise money for …?

• Public agencies
• Companies and businesses
• Private individuals
• Banks only

What is the famous street in Lower Manhattan, synonymous with the U.S. financial markets and the New York Stock Exchange (NYSE)?

• Broad Street
• Main Street
• Wall Street
• Madison Street

Where is Wall Street located?

• Chicago, Illinois
• New York City, New York
• Brooklyn, New York
• Los Angeles, California

What was the name of the National City Bank president who saw an opportunity to expand the stock market in the 1920s?

• Andrew Mellon
• Charles Mitchell
• J.P. Morgan
• Joseph Kennedy

What was a new strategy used by Wall Street brokers in the 1920s to attract more investors?

• Selling stocks on margin
• Encouraging investment in international markets
• Offering financial advice to working-class Americans
• Providing tax breaks for long-term investors

What does buying stocks on margin mean?

• Purchasing stocks with the help of a loan from a broker or banks

• Only buying stocks from reputable companies
• Selling stocks short in order to profit from a decline in price
• Investing a small amount of money and hoping for a large return