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Questions and Answers
What was a major factor leading to the Stock Market Crash of 1929?
What was a major factor leading to the Stock Market Crash of 1929?
- Over-speculation in the stock market (correct)
- Limited borrowing for stock investment
- Government regulation of stock trading
- Decrease in corporate growth
What event marked the beginning of the Stock Market Crash of 1929?
What event marked the beginning of the Stock Market Crash of 1929?
- The stock market plateauing briefly (correct)
- The rise of the Dow Jones Industrial Average
- The passing of new stock trading laws
- The increase in corporate profits
What was the immediate effect of the crash on the Dow Jones Industrial Average?
What was the immediate effect of the crash on the Dow Jones Industrial Average?
- It doubled in value
- It lost roughly half of its value (correct)
- It increased by 25%
- It remained stable
What characterized the decade leading up to the Stock Market Crash of 1929?
What characterized the decade leading up to the Stock Market Crash of 1929?
What contributed to the stock market growth from 1921 to 1929?
What contributed to the stock market growth from 1921 to 1929?
What index was used to measure market strength during the Stock Market Crash of 1929?
What index was used to measure market strength during the Stock Market Crash of 1929?
What did the Stock Market Crash of 1929 usher in?
What did the Stock Market Crash of 1929 usher in?
What was a key factor that led to the market saturation in the stock market in 1929?
What was a key factor that led to the market saturation in the stock market in 1929?
What contributed to the extreme distrust of the stock market following the October 1929 crash?
What contributed to the extreme distrust of the stock market following the October 1929 crash?
What was a significant consequence of the stock market crash in October 1929?
What was a significant consequence of the stock market crash in October 1929?
What was a major reason for the long-term economic depression triggered by the Wall Street Crash of 1929?
What was a major reason for the long-term economic depression triggered by the Wall Street Crash of 1929?
What did the Roaring Twenties become known for economically?
What did the Roaring Twenties become known for economically?
What was the role of consumer credit in the stock market crash of 1929?
What was the role of consumer credit in the stock market crash of 1929?
What was a consequence of the failure of banks during the Great Depression?
What was a consequence of the failure of banks during the Great Depression?
What was a significant measure imposed by President Franklin D. Roosevelt in 1933 to address the Great Depression?
What was a significant measure imposed by President Franklin D. Roosevelt in 1933 to address the Great Depression?
Study Notes
Factors Leading to the Stock Market Crash of 1929
- Excessive speculation and buying on margin contributed to the stock market crash
- Market saturation in 1929 was a key factor, leading to a surplus of stocks and a decrease in demand
- The widespread use of consumer credit allowed people to buy stocks on credit, further fueling the market bubble
The Stock Market Crash of 1929
- The crash began on Black Thursday, October 24, 1929, with stock prices plummeting and panic selling ensuing
- The immediate effect was a sharp decline in the Dow Jones Industrial Average
- The crash marked the beginning of the Great Depression
The Roaring Twenties
- The decade leading up to the crash was characterized by a period of economic prosperity and stock market growth from 1921 to 1929
- The widespread use of consumer credit and the rise of investment trusts contributed to the growth
- The era became known for its economic prosperity and excesses
Consequences of the Stock Market Crash
- The crash led to a decline in investor confidence, causing a wave of panic selling and further decreasing stock prices
- The crash ushered in the Great Depression, which lasted for over a decade
- A significant consequence of the crash was the failure of banks, leading to a loss of savings and a decrease in economic activity
- One of the measures imposed by President Franklin D. Roosevelt in 1933 to address the Great Depression was the establishment of the Federal Deposit Insurance Corporation (FDIC) to insure bank deposits
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Description
Test your knowledge of the events leading to the Stock Market Crash of 1929 with this quiz. Explore the factors that contributed to the crash and its impact on the economy. See how much you know about this pivotal moment in financial history.
