Which of the following statements BEST describes what happened on Black Tuesday?

Stock prices fell and the stock market crashed

Which of the following describes a bank run?

Many customers withdrawing money until the bank’s closure

How did underconsumption affect farmers during the Great Depression?

They were left with unusually large surpluses

How did investors respond to the bear market in 1929, and what was the effect of this response?

quickly sold their stocks, causing stock prices to lower

Why was there not a demand for all the goods being produced in the late 1920s?

People could not afford the goods that were being produced

Examine the flowchart below. Which statement belongs in the center box?

Depositors withdrew their cash from banks

What was the main contributor to many banks failing between 1930 and 1933?

People lost trust in the banks and tried to withdraw money

The Federal Reserve System supplies its banks with a discount rate, which refers to what?

The rate at which banks can borrow money from the Fed

How did Congress contribute to the causes of the Great Depression?

They passed a law that raised the taxes of imported goods

What effect did the Federal Reserve System have on money supply between 1929 and 1933?

Money supply dropped by a third

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Chapter 30: The Causes of the Great Depression

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Questions 23

Answers

1
Which of the following statements BEST describes what happened on Black Tuesday?
Bank runs forced many banks to close their doors
The Supreme Court ruled that the NRA was unconstitutional
Federal troops attacked the Bonus Army marchers
Stock prices fell and the stock market crashed
2
The nation’s longest economic slump is called the...
Great Impression
Grand Depression
Grand Impression
Great Depression
3
Investor optimism was so intense during the 20's, people ________ money to invest in stocks.
stole
inherited
created
borrowed
4
Overall, the Great Depression caused a(n) ____________ in the world economy.
slump
improvement
plateau
increase
5
Which of the following describes a bank run?
A small amount of people petitioning for the bank’s closure
Bank tellers withdrawing money until the bank’s closure
Many customers withdrawing money until the bank’s closure
The government sending money to prevent the bank’s closure
6
How did underconsumption affect farmers during the Great Depression?
They were no longer permitted to form unions
They had to increase their preparedness for natural disaster
They were left with unusually large surpluses
They had to give half of their land to the government
7
A bull market is a period in which stock prices are steadily _________.
plateauing
skewing
rising
falling
8
How did investors respond to the bear market in 1929, and what was the effect of this response?
quickly sold their stocks, causing stock prices to lower
put all of their money into stocks, causing banks to fail
began buying stocks overseas, which led to a bull market
bought as many stocks as possible, which raised stock prices
9
Why was there not a demand for all the goods being produced in the late 1920s?
Banks refused credit to people who did not have steady jobs
Monopolies set extremely high prices
Companies outside of the U.S. offered lower priced goods
People could not afford the goods that were being produced
10
Examine the flowchart below. Which statement belongs in the center box?
Depositors called for government regulation of banks
Depositors withdrew their cash from banks
Depositors demanded that banks raise interest rates
Depositors borrowed from banks to invest in the stock market
11
Which of these did the MOST to trigger a worldwide collapse in trade during the 1930s?
Black Tuesday
Dawes Plan
Dust Bowl
Hawley-Smoot Tariff Act
12
Which of the following increased for workers during the Great Depression?
employment rate
compensation
unemployment rate
number of factories
13
Which law did Congress pass in 1930 to raise the tariffs on imported goods?
Espionage Act
The Law of 1930
Hawley-Smoot Tariff Act
The Depression Salvation Act
14
The central banking authority of the U.S., which manages the nation's money supply is called
the Federal Reserve System
a stock broker
a bull market
buying on margin
15
____________ is the charge made by a bank for the use of money deposited in an account
Marketing
Deposition
Interest
Disinterest
16
What was the main contributor to many banks failing between 1930 and 1933?
People lost trust in the banks and tried to withdraw money
People purchased goods instead of saving money in a bank
People often did not take out loans due to interest rates
People were no longer interested in using credit
17
The Federal Reserve System supplies its banks with a discount rate, which refers to what?
The % of money an individual saves when opening an account
The rate at which banks can borrow money from the Fed
The % of money an individual saves when closing an account
The rate at which banks can lend money to its customers
18
A person who buys and sells stocks for clients is called a
market
broker
tariff
bank
19
How did Congress contribute to the causes of the Great Depression?
They kept interest rates low to make borrowing money easier
They implemented an extremely high discount rate
They passed a law that raised the taxes of imported goods
made policies that favored global trade over local trade
20
Which of the following is NOT considered a cause of the Great Depression?
foreign competition
underconsumption
stock speculation
overproduction
21
A period in which stock prices are steadily decreasing is called a...
buying on margin
stock market
bear market
bull market
22
What effect did the Federal Reserve System have on money supply between 1929 and 1933?
Money supply dropped by eighty points
Money supply dropped by a third
Money supply was not effected at all
Money supply dropped by one
23
They met high demands during WWI, and were the first people to experience underconsumption
women
brokers
farmers
stockers

Chapter 30: The Causes of the Great Depression Flashcards | StudBud