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

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

Revolt · Accepted Answer

Consumers bought too many goods they could not afford.

Question 3

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

Revolt · Accepted Answer

It made the economy weaker.

Question 4

Which is an example of using credit?

Revolt · Accepted Answer

A consumer buys an item and promises to pay later.

Question 5

A strong stock market depends on

Revolt · Accepted Answer

overall confidence in the economy.

Question 6

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 7

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 8

Which best summarizes American economic issues at the end of the 1920s?

Revolt · Accepted Answer

overproduction, too many credit purchases, stock speculation

Question 9

When banks closed as a result of the financial crisis of the Great Depression, depositors

Revolt · Accepted Answer

lost any savings they had kept at a closed bank.

Question 10

What role did consumers play in slowing the economy down in the 1920s?

Revolt · Accepted Answer

Consumers demanded fewer goods.

Boom and Bust Answers