Panic of 1893: Causes and Effects

What was one of the main causes of the Panic of 1893?

• Railroad Boom & Bust

• Stock Market Crash

• Housing Market Collapse

• Oil Crisis

What was the unemployment rate during the Panic of 1893?

• 20%

• 10%

• 5%

• 30%

How did the gold standard contribute to the Panic of 1893?

• It led to a rush to withdraw gold, destabilizing the economy.

• It caused inflation to rise rapidly.

• It resulted in a surplus of gold in banks.

• It encouraged foreign investments.

What was a social impact of the Panic of 1893?

• Increase in poverty and homelessness

• Rise in stock market investments

• Decrease in factory production

• Growth in the housing market

What happened to banks during the Panic of 1893?

• They collapsed due to exposure to railroad investments.

• They thrived due to increased savings.

• They were unaffected by the economic collapse.

• They expanded their operations.

What was a common response from the public during the Panic of 1893?

• Labor strikes and protests

• Increased consumer spending

• Mass migration to cities

• Investment in new businesses