Unit Test

Question 1

How does a person use credit to make a purchase?

Revolt · Accepted Answer

makes a promise to pay at some point in the future

Question 2

Using credit to buy stock is called buying stock on

Revolt · Accepted Answer

margin.

Question 3

By the end of the 1920s, consumers buying and the economy began to slow down.

Revolt · Accepted Answer

stopped

Question 4

Why did stock prices drop so quickly in 1929?

Revolt · Accepted Answer

Investors panicked when stock prices fell and tried to sell as quickly as possible.

Question 5

Overproduction in the farming industry led to

Revolt · Accepted Answer

falling farm incomes

Question 6

Which factor did you identify?

Revolt · Accepted Answer

stock market speculation; too much buying stocks on margin; low farm prices; drop in consumer spending

Unit Test Answers