Economic Developments: Causes of the Wall Street Crash

Question 1

How much money did all USA banks have in reserve in 1929?

Answer 1

$200 million

Question 2

How much money had all USA banks given out as loans in 1929?

Answer 2

$8 billion

Question 3

What percentage of the public bought things on credit?

Answer 3

80%

Question 4

How many banks were there in the USA in the 1920s?

Answer 4

30,000 banks

Question 5

In what year were interest rates lowered from 4% to 3.5%?

Answer 5

Nineteen Twenty-Seven

Question 6

What percentage did the American GDP go up by a year on average in the 1920s?

Answer 6

2% a year

Question 7

What percentage increase in value did the stock market experience from 1925 to 1929?

Answer 7

300% increase

Question 8

What was the stock market valued at by 1929?

Answer 8

$90 billion

Question 9

What fraction of Americans engaged in the Stock Market?

Answer 9

1/5

Question 10

How much money was lost in the stock market on October 23rd 1929?

Answer 10

$4 billion

Question 11

How much money was lost in the stock market on October 24th 1929?

Answer 11

$9 billion

Question 12

How much money had been lost in the stock market by November 1929?

Answer 12

$25 billion

Question 13

How much money was lost in savings due to the Wall Street Crash?

Answer 13

$140 billion

Question 14

By what month and year had the stock market recovered 20% of its value?

Answer 14

April 1930

Question 15

What approach did Harding, Coolidge, and Hoover by 1929 have on the USA?

Answer 15

Laissez-faire approach

Question 16

Name a highest rate income tax cut and the year it was passed which shows a laissez-faire attitude

Answer 16

Highest rate of income tax put down to 25%. It was passed in 1924

Question 17

Name a protective tariff and the year it was passed

Answer 17

Fordney-McCumber Tariff, 1922

Question 18

Who was the British Chancellor of the Exchequer in 1925?

Answer 18

Winston Churchill

Question 19

What did Churchill decide to do for Britain in 1925?

Answer 19

Put them back on the Gold Standard

Question 20

What was the result for the dollar of Britain going back on the gold standard?

Answer 20

It overvalued the dollar

Question 21

What was fueled with the overvaluation of the dollar?

Answer 21

The speculative bubble

Question 22

Why was there a loss of confidence in the stock market?

Answer 22

Many wealthy people started to sell their shares

Question 23

What did one cigarette company experience with their individual share value after the Wall Street Crash?

Answer 23

Their share value went from $100 per share down to $4 per share

Question 24

How many banks failed a year in the 1920s?

Answer 24

500 banks a year

Question 25

By what year did industrial share prices in the stock market go to their pre-crash levels?

Answer 25

1930