Wall Street Crash Flashcards
What year did the Wall Street crash occur?
1929
True or False: The Wall Street crash was primarily caused by over-speculation in the stock market.
True
Fill in the blank: The Wall Street crash led to the ________ of the Great Depression.
onset
What economic event is often associated with the Wall Street crash?
The Great Depression
Which two days in October 1929 are most famously associated with the stock market crash?
October 24 (Black Thursday) and October 29 (Black Tuesday)
What was one major consequence of the Wall Street crash for banks?
Many banks failed.
Multiple Choice: Which of the following was NOT a cause of the Wall Street crash? A) Over-speculation B) Bank failures C) Increased regulation D) Economic disparity
C) Increased regulation
Short Answer: Name one industry that was significantly impacted by the Wall Street crash.
Banking or agriculture
True or False: The stock market crash was the sole cause of the Great Depression.
False
What was the impact of the crash on unemployment rates?
Unemployment rates soared.
Fill in the blank: The Federal Reserve raised interest rates in the late 1920s, which contributed to the ________ in stock prices.
decline
What happened to consumer spending after the Wall Street crash?
Consumer spending decreased significantly.
Multiple Choice: What was one response by the government to the Wall Street crash? A) Tax cuts B) Increased tariffs C) New regulations on banks D) Increased military spending
C) New regulations on banks
Short Answer: What was one psychological impact of the Wall Street crash on the American public?
Loss of confidence in the economy
True or False: The Wall Street crash only affected the United States.
False
What is the term for the rapid increase in stock prices that occurred in the 1920s before the crash?
Bull market
Fill in the blank: The Wall Street crash led to a significant rise in ________ across the United States.
poverty
What was the role of margin buying in the Wall Street crash?
It amplified losses as investors borrowed money to buy stocks.
Multiple Choice: Which of the following was a direct outcome of the Wall Street crash? A) Economic stability B) Increased employment C) Bank runs D) Stock price increases
C) Bank runs
Short Answer: How did the Wall Street crash affect international trade?
It decreased international trade due to economic downturn.
True or False: The Wall Street crash was followed by the establishment of the Securities and Exchange Commission (SEC).
True
What was one major agricultural consequence of the Wall Street crash?
Farmers faced falling prices and increased debt.
Fill in the blank: The Wall Street crash resulted in a loss of ________ in the stock market.
billions of dollars
What was one reason for the lack of government intervention before the crash?
Belief in laissez-faire economics.
Multiple Choice: Which event is often cited as a warning sign before the Wall Street crash? A) A major drought B) The Smoot-Hawley Tariff C) The reduction in consumer credit D) The closing of banks
C) The reduction in consumer credit
Short Answer: In what year did the Great Depression officially begin?
1930
True or False: The stock market recovered immediately after the crash.
False
What impact did the crash have on social services and welfare programs?
They were expanded to assist the unemployed.
Fill in the blank: The Wall Street crash highlighted the need for ________ in the financial system.
regulation
What was one of the long-term effects of the Wall Street crash on American financial markets?
Increased government oversight and regulation.
