Study Guide Alt.: Unit 6: Great Depression

Drag and drop the FIVE causes of the Great Depression (GD)

Groups:

(a) Causes of the GD (5)

,

(b) NOT an ANSWER (3)

• Credit available for spending

• Tariffs & war debt

• Fed. Reserve Board Constricts $$$ supply

• Higher prices for consumers

• WWI veterans demanding payments

• Speculation in the stock market

• Overproduction in farming

• End of prohibition

How did tariffs & war debts led to the Great Depression?

• US cancelled ALL tariffs

• US could not pay their war debt back to Germany

• Many US businesses ended up losing money

What is the crisis in farming in the late 1920s?

• Farmers did NOT invest in the stock market

• The US government made a new tax for farmers only

• Farmers are required to hire 100 more workers

• Farmers are producing too many crops (Overproduction)

Because of overproduction in farming, many farmers end up....

• Hiring more workers to destroy some of their fields

• Lose money then end up in debt or lose their jobs

• Continue to increase the amount of crops they are going to sell

• Try to purchase credit toi make up for losses

What is the issue that many Americans have with using credit?

• People are being denied credit

• Only those who are business owners can apply for credit, leaving the average American broke

• People are NOT paying back their credit loans so banks lose money

Buying on margin means people buy​ (a)   using​ (b)  

• stock
• houses
• cars
• credit
• cash
• war bonds

What does "speculation" in the stock market mean?

• Investing in bonds to secure fixed returns over time.

• Buying stocks using a stockbroker

• Buying stocks ignoring the risks or with credit (risky)

• Selling stocks at a lower cost

One of the 5 causes of the Great Depression is that the Federal Reserve Board ​ (a)   money supply

• constricts (decreases)
• intensifies (increases)

BEFORE the Great Depression (1929), the Stock Market had been a ....

• Bull Market (stock prices were increasing)

• Bear Market (stock prices were decreasing)

After the Stock Market Crash, many people lost their life savings because _______________.

• banks closed
• banks only would give money back to those who made a $20,000 income

• people couldn't remember where they put their money

• someone stole it