AnswersHSSUS US History Sem 1 26-27Prohibition

Boom and Bust Answers

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1
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How did many banks fail consumers in the stock market crash of 1929?

A
Banks had invested customer savings in the stock market, losing depositors’ money in the crash.
B
Banks refused to pass on profits made in the stock market to depositors, keeping the money.
C
Banks refused to issue loans to help investors pay for their financial losses in the crash.
D
Banks only paid a small portion of insurance owed to depositors for their financial losses.
2
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During the 1920s, buying stock on credit was called

A
buying on speculation.
B
buying on a gamble.
C
buying on margin.
D
buying on margin call.
3

A strong stock market depends on

A
many investors speculating.
B
many investors buying on margin.
C
most consumers buying on credit.
D
overall confidence in the economy.
4

Look at the graph. Then answer the question.Which best explains what had happened in general by the end of October 1929 in the stock market?

Question illustration
A
The market had an overall rally.
B
The market had lost much of its value.
C
The market had totally collapsed.
D
The market had slowly inched upward.
5

In 1929, unresolved economic issues led to

A
an increase in consumer demand.
B
a stock market crash.
C
a stock market boom.
D
an increase in the production of goods.
6

Which best explains how the overproduction of goods in the 1920s affected consumer prices and the economy?

A
Prices fell as consumer demand increased, and the economy grew.
B
Prices increased along with consumer demand, and businesses prospered.
C
Prices fell as consumer demand decreased, and the economy slowed down.
D
Prices increased but consumer demand decreased, and the economy grew.
7

What effect did the use of credit have on the economy in the 1920s?

A
It made the economy stronger.
B
It made the economy weaker.
C
It made parts of the economy stronger.
D
It solved the problem of overproduction.
8

Businesses and industries in the 1920s most closely followed the buying demands of

A
the government.
B
farmers.
C
consumers.
D
manufacturers.
9

During which decade did an economic boom and bust occur in the United States?

A
1900s
B
1910s
C
1920s
D
1930s
10

Which is an example of using credit?

A
A consumer buys an item and pays by check.
B
A consumer buys an item and promises to pay later.
C
A consumer buys a share in a company.
D
A consumer buys an item and argues over the price.
11

Which best explains why people failed to make their promised payments on items during the 1920s?

A
They bought too little.
B
They bought too much.
C
They bought on margin.
D
They speculated.
12

What role did consumers play in slowing the economy down in the 1920s?

A
Consumers demanded fewer goods.
B
Consumers demanded more goods.
C
Consumer demanded less expensive goods.
D
Consumer demanded better-made goods.
13

When banks closed as a result of the financial crisis of the Great Depression, depositors

A
were given stock shares instead of cash in compensation.
B
could retrieve the money from their accounts before closure.
C
lost any savings they had kept at a closed bank.
D
could recover their savings from the government.
14

A strong stock market depends on

A
many investors speculating.
B
many investors buying on margin.
C
most consumers buying on credit.
D
overall confidence in the economy.
15

In the 1920s, what did businesses and industries do that caused the economy to slow down?

A
They hired more workers.
B
They speculated in the stock market.
C
They bought stocks on margin.
D
They overproduced goods.
16

During the 1920s, buying stock on credit was called

A
buying on speculation.
B
buying on a gamble.
C
buying on margin.
D
buying on margin call.
17

How did many banks fail consumers in the stock market crash of 1929?

A
Banks had invested customer savings in the stock market, losing depositors’ money in the crash.
B
Banks refused to pass on profits made in the stock market to depositors, keeping the money.
C
Banks refused to issue loans to help investors pay for their financial losses in the crash.
D
Banks only paid a small portion of insurance owed to depositors for their financial losses.
18

In 1929, unresolved economic issues led to

A
an increase in consumer demand.
B
a stock market crash.
C
a stock market boom.
D
an increase in the production of goods.
19

How did consumers weaken the economy in the late 1920s?

A
Consumers only bought a limited number of products.
B
Consumers bought too many goods they could not afford.
C
Consumers refused to pay high prices for agricultural goods.
D
Consumers increased their spending and only used cash.
20

Which best summarizes American economic issues at the end of the 1920s?

A
overproduction, too many credit purchases, stock speculation
B
a decrease in credit to consumers, overproduction, stock speculation
C
underproduction, too many credit purchases, stock speculation
D
underproduction, a decrease in credit to consumers, stock speculation

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