C 14 Study Guide

Which industry was identified as barely profitable during the late 1920s warning signs?

• Railroads and textiles sectors

• Automobiles and aviation sectors

• Pharmaceutical and film sectors

• Telegraph and radio sectors

What economic problem did many farmers face after World War I?

• Surplus gold from exports

• Heavy debts from expansion

• High wages from unions

• Profits from price supports

Which presidential candidates faced off in the 1928 election?

• Warren Harding and Alfred Smith

• Franklin Roosevelt and Herbert Hoover

• Calvin Coolidge and Al Smith

• Herbert Hoover and Alfred Smith

Why did Hoover win the 1928 election by a wide margin?

• Support from southern Democrats

• Promise to end Prohibition quickly

• Endorsement by labor unions

• Perceived strong Republican economy

Buying on margin in the 1920s meant what practice?

• Paying a little and borrowing rest

• Paying full price in cash only

• Trading goods for company stock

• Using gold to secure every trade

Speculation in the stock market is best described as

• High-risk buying for quick profit

• Government-insured safe trading

• Long-term value investing strategy

• Purchasing only dividend stocks

What action by the Federal Reserve pushed borrowers toward corporations for loans?

• Banned all stock short selling

• Nationalized major commercial banks

• Restricted banks’ margin loans

• Cut interest rates dramatically

Which date is known as Black Tuesday, marking a full stock market collapse?

• September 5, 1929

• October 24, 1928

• November 12, 1930

• October 29, 1929

By mid-November 1929, approximately how much value had been lost in the market?

• About three billion dollars

• About thirty billion dollars

• About nine billion dollars

• About sixty billion dollars

Why did many depositors lose their savings when banks failed?

• Stocks always recover eventually

• Banks refused all withdrawals

• Gold standard fully collapsed

• No federal bank insurance existed