Boom and Bust

Question 1

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

Revolt · Accepted Answer

Banks had invested customer savings in the stock market, losing depositors’ money in the crash.

Question 2

During the 1920s, buying stock on credit was called

Revolt · Accepted Answer

buying on margin.

Question 3

A strong stock market depends on

Revolt · Accepted Answer

overall confidence in the economy.

Question 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?

Revolt · Accepted Answer

The market had lost much of its value.

Question 5

In 1929, unresolved economic issues led to

Revolt · Accepted Answer

a stock market crash.

Question 6

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

Revolt · Accepted Answer

Prices fell as consumer demand decreased, and the economy slowed down.

Question 7

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

Revolt · Accepted Answer

It made the economy weaker.

Question 8

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

Revolt · Accepted Answer

consumers.

Question 9

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

Revolt · Accepted Answer

1920s

Question 10

Which is an example of using credit?

Revolt · Accepted Answer

A consumer buys an item and promises to pay later.

Boom and Bust Answers