1929 Quiz: The Stock Market Crash of 1929 Test

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

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?

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?

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?

Economic optimism and over-speculation Signup and view all the answers

What contributed to the stock market growth from 1921 to 1929?

Borrowed money being invested in the stock market Signup and view all the answers

What index was used to measure market strength during the Stock Market Crash of 1929?

Dow Jones Industrial Average Signup and view all the answers

What did the Stock Market Crash of 1929 usher in?

The Great Depression Signup and view all the answers

What was a key factor that led to the market saturation in the stock market in 1929?

The lack of stock options in goods or services to support the rate of growth Signup and view all the answers

What contributed to the extreme distrust of the stock market following the October 1929 crash?

The over-confidence in the stock market Signup and view all the answers

What was a significant consequence of the stock market crash in October 1929?

The initial stock market crash led to a lack of capital and hesitancy on the part of investors Signup and view all the answers

What was a major reason for the long-term economic depression triggered by the Wall Street Crash of 1929?

The stock market crash and subsequent banking crisis creating a feedback loop Signup and view all the answers

What did the Roaring Twenties become known for economically?

Unheard of wealth amassed by businessmen and their companies Signup and view all the answers

What was the role of consumer credit in the stock market crash of 1929?

Consumer credit led to excessive investment in the stock market, causing the crash Signup and view all the answers

What was a consequence of the failure of banks during the Great Depression?

Checks were almost entirely defunct because merchants and contractors had no way of knowing which would be honored by banks Signup and view all the answers

What was a significant measure imposed by President Franklin D. Roosevelt in 1933 to address the Great Depression?

Imposition of measures to support banks and their clients Signup and view all the answers

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

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

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.