SOL Daily Review Quiz #22 2/17/25

What was one major cause of the stock market crash in the 1920s?

• People saved too much money

• People bought stocks with borrowed money they couldn't repay

• The government regulated stocks too strictly

• Banks refused to give loans

How did the Federal Reserve's policies affect the economy during this time?

• They helped prevent bank failures

• They strengthened international trade

• They improved stock market stability

• They contributed to the banking system's collapse

What role did tariffs play in the economic problems of the 1920s?

• They encouraged international trade

• They lowered product prices

• They discouraged international trade

• They helped American farmers

What appeared to hide the economic problems of the 1920s?

• General optimism of the era

• Strong banking regulations

• Government control of the economy

• International trade agreements

Which practice made the stock market particularly risky in the 1920s?

• Government regulation

• Conservative investing

• Over-speculation

• International trading

What was a consequence of people borrowing money to buy stocks?

• It created stable market conditions

• It led to sustainable growth

• It strengthened the banking system

• It created dangerous debt levels

The Federal Reserve's poor monetary policies mainly affected:

• International trade

• The banking system

• Farm production

• Railroad transportation

What economic attitude was common during the 1920s?

• Careful spending

• Conservative investment

• Excessive optimism

• Economic caution

High tariffs during this period resulted in:

• Increased foreign trade

• Better international relations

• Reduced international trade

• Lower domestic prices

Which factor showed that the 1920s prosperity was unstable?

• Strong banking regulations

• Careful stock market investing

• Government economic controls

• Over-reliance on borrowed money