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

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

  • Economic disparities
  • Government regulations
  • Rampant speculation (correct)
  • Sound investment strategies
  • What was the result of investors buying stocks on margin?

  • Stable investment returns
  • No impact on investment returns
  • Amplified gains during market upswings (correct)
  • Reduced gains during market upswings
  • What was the outcome of the overvalued stock prices?

  • Increased investor confidence
  • Reduced credit extension
  • A stable stock market
  • An economic bubble (correct)
  • 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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