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End of Prosperity Review

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

What happened on Black Tuesday, October 29, 1929?

a)

The stock market turned into a bull market.

b)

Banks began to close after running out of money.

c)

stock prices collapsed and the stock market crashed.

d)

Banks made it more costly to offer margin loans to investors

2.

Why did many banks close in the late 1920s and early 1930s?

a)

The federal government took over all banking practices for the nation.

b)

Banks ran out of money when customers rushed to withdraw their deposits.

c)

Mandy bankers retired due to the success they achieved in the stock market.

d)

Customers preferred to keep their money in the stock market rather than in banks.

3.

How did President Hoover respond to the Great Depression?

a)

He did little to provide direct assistance to individuals.

b)

He made early military bonus payments to World War I veterans.

c)

He set up Hoovervilles as places where citizens in need could go for help.

d)

He implemented new programs that loaned billions of dollars to individuals.

4.

How was Franklin D. Roosevelt's philosophy of government different from that of Herbert Hoover?

a)

Roosevelt felt that it was up to private individuals and institutions to offer relief.

b)

Roosevelt believed that the government should take active steps to provide.

c)

Roosevelt thought that providing aid would weakedn Americans spirit of self reliance.

5.

Buying stocks on margin was risky.

a)

True

b)

False

6.

Someone who buys a product or service is called a

a)

producer

b)

flapper

c)

banker

d)

consumer

7.

A fee paid for borrowing money is called a loan.

a)

True

b)

False

8.

Which of the following is NOT a cause of the Great Depression?

a)

Stock Market Crash

b)

Advertisement

c)

Credit

d)

Prohibition

9.

You decide to invest in the stock market. You take out a loan to buy your shares in the stock. What is this called?

a)

interest

b)

credit

c)

loan

d)

buying on margin

10.

I hear an advertisement on the radio for a new Model T. I really want to impress my neighbors and get one. I don't have any case to purchase it, so I use _____ to pay for it.

a)

credit

b)

overproduction

c)

Black Tuesday

d)

shares

11.

A large sum of money that is borrowed and paid back with interest is called a loan.

a)

True

b)

False

12.

You took out a loan to buy a new house. You now have ________.

a)

consumer

b)

shares

c)

debt

d)

measles

13.

Farmers produced too many crops and no one was buying the crops. The crops went to waste. This is an example of _________.

a)

overproduction

b)

underproduction

c)

Dust Bowl

d)

interest