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Causes of the Great Depression

Total questions: 35

Worksheet time: 22mins

Name
Class
Date
1.
Which of the following statements best describes what happened on Black Tuesday?
a)
Stock prices fell and the stock market crashed.
b)
Bank runs forced many banks to close their doors.
c)
Federal troops attacked the Bonus Army marchers.
d)
The Supreme Court ruled that the NRA was unconstitutional.
2.
This is the process of taking money borrowed from the bank or a broker, and putting it into the stock market
a)
Buying on Margin 
b)
Speculation 
c)
Buying on Credit 
d)
Overconsumption 
3.
A way of borrowing money from a bank or finance company so that you can have what you want and pay for it later
a)
Speculation 
b)
Buying on Credit 
c)
Buying on Margin 
d)
Overproduction 
4.
This is the idea that the rich become richer, while the poor become poorer
a)
Black Tuesday 
b)
Speculation 
c)
Unequal distribution of wealth
d)
Buying on Credit 
5.
When a large number of customers line up to withdraw cash from deposit accounts from a financial institution
a)
Speculation 
b)
Black Friday 
c)
Bank Run 
d)
Underconsumption 
6.
When the purchase of goods and services is at a lower level then the supply (not enough goods are being purchased by consumers)
a)
Underconsumption
b)
Overproduction 
c)
Speculation 
d)
Buying on Margin 
7.
A sudden dramatic decline of stock prices, resulting in a significant loss of wealth.
a)
Bull Market 
b)
Speculation 
c)
Bank Run 
d)
Stock Market Crash 
8.
This cause led many businesses to close, because they were producing more goods than consumers were willing to buy.
a)
Overproduction 
b)
Underconsumption 
c)
Buying on Credit 
d)
Stock Speculation 
9.

During the 1920's companies sold shares of stocks primarily to:

a)

reduce taxes

b)

inflate profits

c)

get government loans

d)

raise money for improvements

10.

What year did the stock market crash?

a)

1919

b)

1914

c)

1929

d)

1933

11.
A way of borrowing money from a bank or finance company so that you can have what you want and pay for it later
a)
Speculation 
b)
Buying on Credit 
c)
Buying on Margin 
d)
Overproduction 
12.

When a large number of customers line up to withdraw cash from deposit accounts from a financial institution

a)

Speculation

b)

Black Friday

c)

Bank Run

d)

Underconsumption

13.
When people went to the bank to withdraw their money and the banks had no money was known as the 
a)
Bank Crisis 
b)
Black Tuesday
c)
Stock Market Crash
d)
New Deal 
14.
The collection of markets and exchange where the issuing and trading of equities, bonds and other sorts of securities takes place.
a)
Margin
b)
New Deal
c)
Deficit Spending 
d)
Stock Market 
15.
On October 29, 1929 share prices on the New York Stock Exchange completely collapsed and partially caused the Great Depression.
a)
Black Thursday
b)
Black Tuesday 
c)
Black Friday
d)
Black Sunday 
16.
A time in America following the roaring 20's where America experience rising unemployment that did not end until the onset of World War II. 
a)
New Deal
b)
Roaring 20's
c)
Great Depression
d)
Cold War 
17.
In 1929, the United States entered an economic slowdown called the Great Depression. One of the early events was the stock market crash. What was a major cause of the stock market crash?
a)
Stock prices went up so fast that investors could not keep up with the changes. 
b)
Stock prices fell, investors panicked and sold their stocks, which led to more panic. 
c)
The government decided to close the stock market in New York. 
d)
People decided to invest their money in stock markets in Europe. 
18.

Which of the following trends set the stage for the Great Depression?

a)

Americans building up personal debt

b)

Banks making a lot of very safe loans

c)

Americans refusing to play the stock market

d)

A lack of developed farm land in the Midwest and Great Plains

19.

Which of the following problems was a key factor that helped lead to both the Great Depression of the 1930s and the economic recession that began in 2008?

a)

Americans were going to too many jazz concerts

b)

Business was booming, and profits were distributed equally among workers and mangers

c)

America was mired in costly wars at both times

d)

Americans were spending too much money they didn't have

20.

Why did so many banks fail during the Great Depression?

a)

Back then, banks had no deposits--they only made loans

b)

The banks had invested all their depositors' money in the stock market

c)

The banks had used their depositors' money to buy automobiles, radios, and other popular inventions.

d)

The bank had made risky loans that weren't paid back

21.

What effect did the Great Depression have on the American economy?

a)

It led to high unemployment and underproduction.

b)

It brougth about large business investments and low taxes.

c)

It created too much money in cirulation and high stock prices.

d)

It increased employment and real estate vaules

22.

What happened to a large number of the banks in the United States during this time period?

a)

banks stayed open

b)

banks were shut down

c)

banks had to pay a fine

d)

banks were destroyed by riots

23.
A way of borrowing money from a bank or finance company so that you can have what you want and pay for it later
a)
Speculation 
b)
Buying on Credit 
c)
Buying on Margin 
d)
Overproduction 
24.

When a large number of customers line up to withdraw cash from deposit accounts from a financial institution

a)

Speculation

b)

Black Friday

c)

Bank Run

d)

Underconsumption

25.

What was the trigger of the Great Depression

a)

Farmers went on strike

b)

The Stock Market crashed

c)

Overproduction of goods

d)

Franz Ferdinand assassination

26.

How did factories play a role in the Great Depression?

a)

Many shut down and thousands lost their jobs.

b)

They made so much money that everyone else was poor.

c)

They were very dangerous for women.

d)

Almost all farmers left to work in the factories.

27.

What happened with the banks during the Great Depression?

a)

They bailed out the best factories.

b)

Thousands went out of business.

c)

Their money was stolen by the government

d)

They had to make new money.

28.

Which of these are the steps, in order, to how the stock market works?

a)

Buy loans, don't pay them back, bank takes your house.

b)

Invest in a company, the business does well, your investment is worth more.

c)

Buys stocks in a company, the company succeeds, you lose money.

d)

Factories need investors, banks provide money, bank employees get rich.

29.

Overproduction is when

a)

Factories make too much of an item with no one to buy them.

b)

People buy too many items and cannot afford them all.

c)

Banks produce too much money and devalue the dollar.

d)

All answers are correct.

30.

Buying on credit means

a)

You make small payments for goods.

b)

The money comes directly from your boss.

c)

You get the goods without paying, with trust you will pay in the future.

d)

The item you want is put to the side until you can afford it.

31.

What are stocks?

a)

Shares of a company you can buy as an investment

b)

Overproduced items in a factory

c)

Loans given to those who lost their jobs

d)

Metallic pieces of a market that keep it from crashing

32.

Black Tuesday is

a)

The second Tuesday of each November, also called National Banking Day

b)

The official end of the Roaring 20s

c)

October 29th, 1929, the day the Stock Market crashed

d)

The day President FDR was assassinated

33.

Installment Buying

a)

Factories purchasing other factories with the help of banks

b)

Paying for something with a loan

c)

Using credit to make large purchases

d)

Buying goods in small payments

34.

How did an economic recession help cause the Great Depression?

a)

Americans bought less, causing less demand for goods

b)

Bank runs caused depositors to withdraw all their money from banks

c)

The market bubble popped, crashing Wall Street

d)

Low interest rates encouraged risky speculation

35.

Law that raised taxes on imports and worsened the Depression

a)

Hawley-Smoot Tariff Act

b)

The Revenue Act of 1932

c)

The Emergency Banking Act of 1933

d)

The National Industrial Recovery Act of 1933