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Gr 11 History Ch 2: The Wall Street crash of 1929

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What was the primary reason for the stock market's growth in the 1920s?

Rampant speculation

What was the result of investors buying stocks on margin?

Amplified gains during market upswings

What was the outcome of the overvalued stock prices?

An economic bubble

Why did investors struggle to repay loans after the market crash?

<p>Due to the catastrophic impact of leveraged investment strategies</p> Signup and view all the answers

What was the consequence of the economic disparities in the 1920s?

<p>The wealth generated during the 1920s was unevenly distributed</p> Signup and view all the answers

What was the primary impact of the lack of regulations on the stock market?

<p>allowed for speculative excess and risky investment practices</p> Signup and view all the answers

What was the immediate consequence of the Wall Street Crash of 1929?

<p>The Great Depression</p> Signup and view all the answers

What was the result of the widespread bank failures?

<p>Undermined public confidence in the financial system</p> Signup and view all the answers

What was the main consequence of investors buying stocks on margin?

<p>Amplified gains during market upswings and catastrophic impacts when the market turned</p> Signup and view all the answers

What contributed to the stock market bubble in the 1920s?

<p>Overvalued stocks and speculative investments</p> Signup and view all the answers

What was the main reason for the lack of stability in the financial system in the 1920s?

<p>Minimal government oversight</p> Signup and view all the answers

What was the impact of widespread bank failures on the economy?

<p>Undermined public confidence in the financial system</p> Signup and view all the answers

What was the primary factor that amplified the impact of the stock market crash in 1929?

<p>The widespread practice of buying stocks on margin</p> Signup and view all the answers

What was the main consequence of the overreliance on credit in the 1920s?

<p>The accumulation of unsustainable debt and financial strain</p> Signup and view all the answers

What was the primary effect of the stock market crash on the banking system?

<p>The failure of over 650 banks in 1929</p> Signup and view all the answers

What was the main impact of the widespread business closures during the Great Depression?

<p>A drastic reduction in consumer spending and investment</p> Signup and view all the answers

What was the primary consequence of the uneven distribution of wealth in the 1920s?

<p>The overreliance on credit and financial strain</p> Signup and view all the answers

What was the main reason for the lack of stability in the financial system in the 1920s?

<p>The lack of government oversight and regulation</p> Signup and view all the answers

What was the primary impact of the stock market crash on the employment rate?

<p>Unemployment soared to 25% at the depression's peak</p> Signup and view all the answers

What was the main consequence of the widespread bank failures during the Great Depression?

<p>The undermining of public confidence in the financial system</p> Signup and view all the answers

What was the primary factor that contributed to the stock market's susceptibility to a crash in 1929?

<p>The overvalued stock prices</p> Signup and view all the answers

What was the consequence of investors buying stocks on margin during the 1920s?

<p>An amplification of gains during market upswings</p> Signup and view all the answers

What was the impact of the lack of regulations on the stock market in the 1920s?

<p>An environment conducive to speculative excess</p> Signup and view all the answers

What was the primary effect of the widespread bank failures during the Great Depression?

<p>A further strain on the financial system</p> Signup and view all the answers

What was the consequence of the economic disparities in the 1920s?

<p>An unstable economic foundation</p> Signup and view all the answers

What was the primary impact of the stock market crash on the employment rate?

<p>A significant rise in unemployment</p> Signup and view all the answers

What was the primary consequence of the overreliance on credit in the 1920s?

<p>An environment conducive to speculation</p> Signup and view all the answers

What was the main impact of the widespread business closures during the Great Depression?

<p>Widespread economic hardship</p> Signup and view all the answers

What was the primary mechanism by which speculation led to the amplification of gains during market upswings in the 1920s?

<p>Investors buying stocks on margin</p> Signup and view all the answers

Which of the following economic factors contributed to the stagnation of real wages in the 1920s?

<p>The uneven distribution of wealth</p> Signup and view all the answers

What was the primary consequence of the widespread bank failures during the Great Depression?

<p>A decrease in public confidence in the financial system</p> Signup and view all the answers

Which of the following factors contributed to the economic bubble in the 1920s?

<p>The overvaluation of stocks</p> Signup and view all the answers

What was the primary consequence of the stock market crash on the employment rate?

<p>A significant increase in unemployment rates</p> Signup and view all the answers

What was the primary reason for the catastrophic impact of the stock market crash on investors?

<p>The use of margin had amplified their losses</p> Signup and view all the answers

What was the consequence of the uneven distribution of wealth in the 1920s?

<p>The wealth generated was not built on a stable foundation</p> Signup and view all the answers

What was the consequence of the widespread bank failures during the Great Depression?

<p>The ability to obtain credit decreased</p> Signup and view all the answers

What was the primary effect of the stock market crash on the economy?

<p>The economy entered a period of depression</p> Signup and view all the answers

What was the consequence of the overreliance on credit in the 1920s?

<p>The economic downturn was exacerbated</p> Signup and view all the answers

What was the primary reason for the stock market's growth in the early 1920s?

<p>The widespread use of margin</p> Signup and view all the answers

What was the consequence of the lack of regulations on the stock market?

<p>The stock market was susceptible to a crash</p> Signup and view all the answers

What was the primary impact of the widespread business closures during the Great Depression?

<p>The unemployment rate increased</p> Signup and view all the answers

What was the primary mechanism by which the economic bubble was sustained in the 1920s?

<p>The widespread use of margin</p> Signup and view all the answers

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