Causes of the Great Depression
Quiz by Kyle Walker
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10 questions
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- Q1What was “Black Tuesday”?October 29, 1929, which is when the farmers of Iowa went on a crop strike.October 29, 1929, which is when the stock market crashed.October 29, 1929, which is when Herbert Hoover was elected president.October 29, 1929, which is when the New Deal went into effect.30s
- Q2Which of the following was not one of the factors leading up the Great Depression?Uneven distribution of wealth in AmericaPeople living on creditHoboes riding the railways to find jobs in big citiesOverproduction of consumer goods30s
- Q3What does it mean to “buy stock on margin”?Buying and selling a lot of stock in a short period of timeThis is when you buy stock but you only pay a small percent of the cost and borrow the rest from the bank.This is when you buy a lot of stock and pay for it all with U.S. savings bondsThis is when you buy stock and sell it before the price changes.30s
- Q4One problem of buying on margin was that if the stock price______________________the consumer would go into heavy amounts of __________________.Rose, debtFell, profitRose, profitFell, debt30s
- Q5Buying and selling stocks on the chance that they might make a quick profit and ignoring the risks is called…SpeculationBlack TuesdayCreditBuying on Margin30s
- Q6When people invested in the stock market, they would only make money if they ____________ their stocks for_______________than they paid for them.Sold, lessSold, moreKept, lessKept, More30s
- Q7What is the problem with “Bank Runs”?When many people deposit money into one or more banks, the bank gets overloaded and runs out of room to store the excess money.When banks are closed no one can withdraw their money which creates a shortage of funds.When many people run to the bank at the same time, they often run into each other on the sidewalk which causes mass riots.When too many people withdraw from unsound banks, the bank does not have enough money to cover the withdrawals and goes out of business.30s
- Q8How could buying too much stuff on credit cause problems for American consumers?People buy too much stuff and have to buy storage units to hold all of their purchases.People buy more than they can afford and get overrun by debt and credit problemsThere is no problem with installment plans, and everyone should be thankful for them.Men have trouble installing the new equipment they purchase which causes problems.30s
- Q9When America raised its tariffs, what did the countries of Europe do?When the Us raised their tariffs, other countries lowered them to competeOther countries raised their tariffs as well which made foreign trading go downOther countries traded more with the United States because of the new tariffsOther countries borrowed money from the US to help pay for the new tariffs30s
- Q10The stock market crash was the only cause of the Great DepressionTrueFalse30s