The Wall Street Crash of 1929
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Questions and Answers

What was one consequence of banks declaring bankruptcy during this period?

  • Rise in consumer goods production
  • Loss of savings for people who had not directly invested (correct)
  • Increase in bank investments in stocks
  • Banks began lending more money

Which factor contributed to the widespread unemployment following the bank failures?

  • Companies being unable to pay suppliers and workers (correct)
  • Young population entering the job market
  • Government intervention to support banks
  • Increase in consumer demand

Who was elected in 1932 as a response to the economic situation?

  • F.D. Roosevelt (correct)
  • Herbert Hoover
  • Warren G. Harding
  • J.M. Keynes

What was the initial reaction of clients when they found out about the banks' financial troubles?

<p>They rushed to withdraw their money. (B)</p> Signup and view all the answers

Which economic theory did F.D. Roosevelt follow after his election?

<p>Keynesian economics (D)</p> Signup and view all the answers

What led to the downward spiral in the economy during this period?

<p>Job losses leading to decreased consumption (B)</p> Signup and view all the answers

What impact did the stock market investments by banks have on their stability?

<p>Caused significant financial losses (D)</p> Signup and view all the answers

What did companies have to do as a result of decreased demand after the crash?

<p>Reduce production of consumer goods (D)</p> Signup and view all the answers

What major economic event occurred in October 1929?

<p>Wall Street crash (B)</p> Signup and view all the answers

What was a significant consequence of the US economy's growth in the 19th century?

<p>Lead in industrial sectors like automobiles (B)</p> Signup and view all the answers

Which political ideology did the Republican administration in the 1920s support regarding the economy?

<p>Laissez faire (A)</p> Signup and view all the answers

What problem was increasingly affecting farmers towards the end of the 1920s?

<p>Overproduction and rising debts (D)</p> Signup and view all the answers

What was one impact of the Great War on the American economy in the 1920s?

<p>It created an export boom (A)</p> Signup and view all the answers

During the 1920s, how did the American public generally view the economy?

<p>Optimistically about future prospects (A)</p> Signup and view all the answers

What adverse trend was notable in sectors like agriculture as the economy expanded in the 1920s?

<p>Saturation of market capacity (A)</p> Signup and view all the answers

What led companies to go public in the 1920s?

<p>To share financial burdens with investors (D)</p> Signup and view all the answers

What event in February 1917 signified the downfall of the tsar in Russia?

<p>A widespread bread riot in the streets (B)</p> Signup and view all the answers

Which leadership decision contributed to the chaos in Russia after the tsar's abdication?

<p>Continuing participation in World War I (A)</p> Signup and view all the answers

What was one of the main reasons for the desperate need for land reform in Russia during the 1917 revolution?

<p>Land was predominantly owned by the wealthy. (C)</p> Signup and view all the answers

Who proposed an immediate end to World War I and land reforms as part of the Bolshevik agenda?

<p>Lenin (B)</p> Signup and view all the answers

What was the nature of the civil war in Russia from 1918 to 1921?

<p>It was between the Bolshevik party and a coalition of opposing groups. (B)</p> Signup and view all the answers

How did the Bolshevik party gain control of the government during the civil war?

<p>Through widespread propaganda and promises of reform (B)</p> Signup and view all the answers

What method did the Bolshevik government implement to manage agricultural production?

<p>Requisitioning a portion of agricultural output (C)</p> Signup and view all the answers

What was the result of the February 1917 revolution?

<p>The abdication of the tsar and a power vacuum (C)</p> Signup and view all the answers

What role did big businesses play in the rise of fascism in Italy?

<p>They financially supported fascists to counter strikes and social crises. (D)</p> Signup and view all the answers

What did workers in Italy create to express their ideas?

<p>Soviets, assemblies similar to unions. (A)</p> Signup and view all the answers

What was a significant action taken by Mussolini to gain power in Italy?

<p>He led a violent march on Rome to overpower the government. (A)</p> Signup and view all the answers

What was the result of the King of Italy's decision to make Mussolini prime minister?

<p>Mussolini solidified his power and the fascist regime took control. (A)</p> Signup and view all the answers

What tactic did fascists use to undermine political opposition in Italy?

<p>Outlawing other political parties and establishing one-party rule. (C)</p> Signup and view all the answers

What was one of the consequences of the League of Nations' failure?

<p>Aggressive acts went uncontested and unpunished. (A)</p> Signup and view all the answers

What was a key feature of Italy under fascist rule by January 1925?

<p>Complete censorship of the press and no elections. (A)</p> Signup and view all the answers

What significant action did Hitler take in 1933?

<p>He began rearming Germany. (B)</p> Signup and view all the answers

How did propaganda influence people's perception of the fascist regime?

<p>It misled people into believing that fascists were restoring the glory of the Roman Empire. (B)</p> Signup and view all the answers

How did France respond to Germany's remilitarization of the Rhineland in 1936?

<p>They adopted a defensive stance and chose not to act. (D)</p> Signup and view all the answers

What was the justification used by Britain for not sending help to France in the face of German aggression?

<p>They felt the Treaty of Versailles was excessively punitive. (D)</p> Signup and view all the answers

What was the initial public reaction to the rise of the fascist party in Italy?

<p>A general apathy from other parties towards fascist violence. (D)</p> Signup and view all the answers

What was the significance of the Anschluss in 1938?

<p>Austria was annexed by Germany without significant opposition. (D)</p> Signup and view all the answers

What was Germany's military strategy when troops were sent to the Rhineland?

<p>To retreat if encountering French soldiers. (C)</p> Signup and view all the answers

Which military capability did Hitler focus on developing upon coming to power?

<p>An advanced air force and tanks. (D)</p> Signup and view all the answers

What mindset did French generals hold regarding potential conflicts with Germany?

<p>They doubted their ability to win against Germany without British support. (C)</p> Signup and view all the answers

What strategy did Hitler employ after taking over Austria?

<p>He targeted the German speaking population in Czechoslovakia. (C)</p> Signup and view all the answers

What was the reaction of the Czechoslovakians to Hitler's demands regarding the Sudetenland?

<p>They were defiant and rejected the demands. (C)</p> Signup and view all the answers

Which leaders were present at the Munich meeting to discuss Czechoslovakia's situation?

<p>Hitler, Chamberlain, Daladier, Mussolini (D)</p> Signup and view all the answers

What was the perceived effect of the Munich Agreement on Hitler's ambitions?

<p>It encouraged further demands from Hitler. (A)</p> Signup and view all the answers

What did people hope would result from the concessions made in Munich?

<p>Preventing Hitler from making further demands. (C)</p> Signup and view all the answers

How did the British Prime Minister perceive the situation regarding preparations for war?

<p>He thought it was impractical for a distant conflict. (B)</p> Signup and view all the answers

What was the general sentiment in Britain following the Munich Agreement?

<p>Relief due to the avoidance of war. (B)</p> Signup and view all the answers

What did the military's presence during the Austrian referendum imply?

<p>It increased pressure on citizens to vote favorably. (B)</p> Signup and view all the answers

Flashcards

Wall Street Crash of 1929

A major stock market decline in New York City in October 1929, causing significant financial crisis.

American Economic Growth (1920s)

The US economy experienced rapid growth in the 1920s, largely due to wartime production and advancements in industries like the automobile sector.

Laissez-faire policies

Government policies that leave the economy alone, with minimal intervention.

Unsustainable Economic Growth

The rapid growth in the 1920's was fuelled by an imbalance between production and consumer spending capacity.

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Consumer Saturation

Segments of the population lacked the purchasing power to keep up with the rising production, especially farmers and industrial workers.

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Stock Market

A marketplace where shares of companies are traded.

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Stock

Ownership in a company.

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Going Public

Making a company's stock available to the public for purchase.

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Bank Stock Investment

Banks heavily invested in the stock market, using depositors' money to buy stocks.

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Stock Market Crash Impact on Banks

As the stock market crashed, banks lost significant amounts of money, leading many to bankruptcy and closures.

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Bank Run

A sudden rush of depositors withdrawing their money from banks, often due to fears about the bank's solvency.

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Bankruptcy Consequences

Bank closures caused a ripple effect: halting business operations for companies relying on bank financing.

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Reduced Consumption by Population

Many people lost their savings and jobs due to the economic crisis, resulting in less spending in the US.

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Downward Spiral of Production

Reduced demand caused companies to lay off employees further depressing spending and accelerating the economic downturn.

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1932 Presidential Election

The 1932 election saw the electorate choose a Democrat, Franklin D. Roosevelt, promising economic relief.

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Keynesian Economics

Roosevelt's administration adopted the ideas of the British economist, J.M. Keynes, to address economic woes.

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1917 Russian Revolutions

Two revolutions in February and October 1917 that led to the overthrow of the Tsarist regime and the establishment of a new government.

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February Revolution

The first revolution in 1917, which led to the abdication of the Tsar and the establishment of a Provisional Government.

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Provisional Government

The temporary government set up after the February Revolution, aiming to restore order but facing numerous challenges.

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Bolshevik Party

A political party led by Lenin, advocating for an end to the war and radical land reforms.

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Civil War (1918-1921)

Conflict between the Bolsheviks (Reds) and their opponents (Whites) for control of Russia following the revolution.

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Totalitarian Regime

A type of government that holds complete control over all aspects of life, often through authoritarian means.

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Land Reform

The redistribution of land from wealthy landowners to peasants, a crucial demand during the revolution.

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Requisitioning

Government seizing crops and other necessities from farmers to feed soldiers and workers, during and after the civil war.

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Mussolini's Rise to Power

Mussolini's fascist party gained support by presenting themselves as protectors against communism and promising to restore Italy's greatness.

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Fascist Support from Businesses

Business owners, facing strikes and economic turmoil, financially supported the fascists because they promised to suppress labor disruptions and restore stability.

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Soviets and Fear of Communism

Workers' assemblies called 'soviets' were initially well-intentioned but the name caused fear and suspicion because it was associated with communism.

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Fascist Violence and Chaos

The rise of the fascists led to escalating violence between fascists and opponents, destabilizing Italy.

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The March on Rome

The fascist threat of a violent march on Rome forced the King to make a deal with Mussolini, making him Prime Minister.

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King's Deal with Mussolini

The King, in a desperate attempt to restore order, appointed Mussolini Prime Minister, hoping to use him to eliminate left-wing threats and then dismiss him.

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Consolidation of Power

Within three years, Mussolini's fascist party outlawed all other parties, establishing a one-party dictatorship and complete control over the media and elections.

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Fascist Propaganda

The fascist party used extensive propaganda to convince the population that they were restoring Italy's former glory and greatness.

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Treaty of Versailles

A peace treaty signed in 1919 that officially ended World War I. It imposed harsh penalties on Germany, including territorial losses, disarmament, and heavy reparations payments. This treaty triggered a wave of resentment which served as a key factor in the lead-up to World War II.

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Appeasement

A policy of making concessions to an aggressor in order to avoid war. It was pursued by Britain and France towards Nazi Germany, hoping to prevent further aggressions. However, it ultimately emboldened Nazi Germany leading to further expansion.

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Remilitarization of the Rhineland

The act of reintroducing military forces into the Rhineland region of Germany, which had been demilitarized by the Treaty of Versailles. This was a blatant violation of the treaty and a significant step towards German rearmament.

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Anschluss

The annexation of Austria into Germany by Nazi forces in 1938. This was another direct violation of the Treaty of Versailles, which had prohibited Austria from joining Germany.

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League of Nations

An international organization established after World War I to maintain peace and security. It proved ineffective in preventing the rise of Nazi Germany and the outbreak of World War II because of a lack of enforcement power and the inability of member nations to agree on a unified response to aggression.

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French inaction (1936)

France, despite having troops near the Rhine, did not intervene when Germany remilitarized the Rhineland. They feared a war with Germany and were influenced by their past experiences and the British government's stance.

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British appeasement (1936)

Britain was reluctant to intervene when Germany remilitarized the Rhineland. They believed the Treaty of Versailles was too harsh on Germany and saw German rearmament as justifiable.

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German rearmament

Nazi Germany's rapid and illegal buildup of military forces. This violated the Treaty of Versailles and demonstrated their aggressive intentions.

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Sudetenland

A region in Czechoslovakia with a large German-speaking population, targeted by Hitler's expansionist ambitions.

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Munich Agreement

A conference in 1938 where Britain and France agreed to cede the Sudetenland to Germany, effectively allowing Hitler to annex the territory.

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Hitler's Strategy

Hitler's method of expansion involved using referendums and pressure tactics to gain control over territories with significant German-speaking populations.

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Czechoslovakia's Response

Czechoslovakia resisted Hitler's demands for the Sudetenland, but faced pressure from Britain and France, who eventually caved to appease Hitler.

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British Prime Minister's Speech

The British Prime Minister's speech highlighted the public's reluctance to go to war over a distant country, fueling doubts about Britain's commitment to Czechoslovakia.

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The Outcome of Munich

The Munich Agreement effectively allowed Hitler to annex Sudetenland without facing resistance, marking a significant turning point in pre-war Europe.

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Study Notes

The Wall Street Crash of 1929

  • The Wall Street crash of 1929 was a major crisis affecting stock values in the US.
  • The 1920s saw rapid economic growth in the US, unlike Europe which had suffered from WWI.
  • The US led in industrial production, and optimism was high for the future of the economy.
  • However, the American economy had issues: limited consumer base, saturation of markets, and struggling farmers.

Causes of the Crash

  • Over-expansion of the US economy, including the stock market.
  • Stock prices significantly exceeding the actual value of companies.
  • Over-investment in stocks fuelled by speculation, with investors buying shares with borrowed money.
  • Lots of companies borrowed a lot of money leading to high profit for the banks.
  • Banks invested heavily in stocks. When prices fell, banks lost substantial funds.
  • Many people lost their investment and savings, who relied on their savings to live after retirement.
  • Farmers struggled to pay back loans on expensive machinery (due to decrease in prices).
  • Leading to a decline in consumer spending.

Consequences of the Crash

  • Banks failed and many people lost their life savings.
  • Businesses closed and unemployment rose dramatically, affecting nearly a quarter of the population.
  • Reduced consumer spending and overall economic slowdown impacted industrial sectors.
  • The economy spiralled downwards with decreased production and layoffs.
  • Reduced demand for goods increased pressure for more layoffs.
  • A widespread downward spiral in the United States.
  • It had consequences in other countries as they were linked to the US economy.

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Description

This quiz explores the events leading up to and the causes of the Wall Street Crash of 1929. Understand the economic conditions in the 1920s and the factors that contributed to this significant financial crisis in the United States. Analyze the impact on various sectors and its lasting ramifications on the economy.

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