Worksheets6.1 Quiz: Causes of the Great Depression: Worksheet Questions
Total questions: 10
Worksheet time: 5mins
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?
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
