6.1 Quiz: Causes of the Great Depression: Worksheet Questions

What term describes a market in which stock prices are rising?

• Bull Market

• Bear Market

• Black Tuesday

• Margin Buying

Which date is identified as Black Tuesday, marked by a massive sell-off?

• October 24, 1929

• October 29, 1929

• Summer 1928

• January 1, 1930

Which statement best describes the impact of Black Tuesday on people's financial security?

• Stock prices increased, leading to widespread prosperity

• Stock prices collapsed, erasing billions in wealth and causing many to lose their savings

• Investors felt optimistic and purchased more shares

• Banks distributed higher profits to their investors

What term describes a market in which stock prices are falling?

• bull market
• bear market
• volatile market
• flat market

Which practice is described as high‑risk investing focused on quick profits rather than long‑term growth?

• Speculation

• Diversification

• Regulation

• Insurance

What happened during bank runs?

• Banks received emergency cash from the government

• Panic spread and people rushed to withdraw their deposits

• Depositors invested more in stocks

• Interest rates were lowered to stop withdrawals

Why did banks run out of money?

• Banks kept most deposits in vaults and refused to lend

• Banks had used people’s deposits to make loans, and when loans weren’t repaid, banks couldn’t give depositors their money back

• Banks invested only in government bonds that lost value

• Depositors stopped saving altogether

Approximately how many banks collapsed between 1929 and 1932?

• 500

• 1,000

• 5,000

• 10,000

What was one effect of the Hawley‑Smoot Tariff (1930)?

• Lower taxes on imported goods increased global trade

• Raised taxes on imported goods made foreign products more expensive, and other countries retaliated, leading to a drop in global trade

• Eliminated all tariffs only on European goods

• Encouraged U.S. banks to lend more to stock speculators

Which event is considered a major trigger for the Great Depression?

• The signing of the Treaty of Versailles

• The launch of the New Deal

• The stock market crash of 1929

• The end of World War I