The Great Depression and The New Deal 1929-39 Review 4

Front

Buying on margin was a method of buying stocks _

Back

with mostly borrowed money.

Front

The Great Depression began on October 21, 1929 when _

Back

prices on the stock market crashed.

Front

Which of the following was NOT a cause of the Great Depression? workers were not paid enough to buy the products that they made, stock market speculation caused stock prices to go high above their real value, companies produced more products than they could actually sell, and lost money as a result, government spending caused the national debt to increase

Back

government spending caused the national debt to increase

Front

Stock prices first began to decline in late 1929 because _

Back

company earnings declined.

Front

What was the Great Depression?

Back

a long period of lowered economic activity that began in 1929 and did not end until 1939

Front

The stock market crash weakened the nation’s banks because _

Back

banks had invested their deposits in the stock market.

Front

_ invested in stocks, betting that the market would continue to climb so they could make a quick profit.

Back

Speculators

Front

Stockbrokers who made loans that allowed investors to buy stocks could issue a __ to protect their loans.

Back

margin call

Front

As a result of the stock market crash, some banks suffered more losses than they could take and _

Back

were forced to close.

Front

At the time of the stock market crash, the government did not insure bank deposits, so _

Back

customers lost their savings if a bank collapsed.