Roaring Economy to Great Depression — Quiz

Question 1

In the 1920s, many rural banks failed because

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farmers could not repay their loans.

Question 2

In the 1920s, the danger of buying stock on margin was that if the value of the stock dropped, borrowers

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had to make up the difference.

Question 3

What is consumerism?

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a pattern of wanting and buying new products

Question 4

Which industry boosted consumerism in the 1920s, feeding economic growth?

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advertising

Question 5

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

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consumers.

Question 6

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

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It made the economy weaker.

Question 7

A part of the consumerism cycle is that manufacturers

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advertise goods.

Question 8

How did the overproduction of goods in the 1920s affect consumer prices, and in turn, the economy?

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Consumer demand decreased, prices decreased, and the economy slowed.

Question 9

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

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Consumers bought too many goods they could not afford.

Question 10

During the 1920s, people would buy stock on margin, which meant that they

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bought it on credit.

Roaring Economy to Great Depression — Quiz Answers