AnswersHSSUS US History Sem 1 26-27Prohibition

Boom and Bust Answers

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1
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How did consumers weaken the economy in the late 1920s?

A
Consumers only bought a limited number of products.
B
Consumers bought too many goods they could not afford.
C
Consumers refused to pay high prices for agricultural goods.
D
Consumers increased their spending and only used cash.
2
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In the 1920s, what did businesses and industries do that caused the economy to slow down?

A
They hired more workers.
B
They speculated in the stock market.
C
They bought stocks on margin.
D
They overproduced goods.
3

A strong stock market depends on

A
many investors speculating.
B
many investors buying on margin.
C
most consumers buying on credit.
D
overall confidence in the economy.
4

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

A
overproduction, too many credit purchases, stock speculation
B
a decrease in credit to consumers, overproduction, stock speculation
C
underproduction, too many credit purchases, stock speculation
D
underproduction, a decrease in credit to consumers, stock speculation
5

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?

Question illustration
A
The market had an overall rally.
B
The market had lost much of its value.
C
The market had totally collapsed.
D
The market had slowly inched upward.
6

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

A
1900s
B
1910s
C
1920s
D
1930s
7

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

A
It made the economy stronger.
B
It made the economy weaker.
C
It made parts of the economy stronger.
D
It solved the problem of overproduction.
8

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

A
Banks had invested customer savings in the stock market, losing depositors’ money in the crash.
B
Banks refused to pass on profits made in the stock market to depositors, keeping the money.
C
Banks refused to issue loans to help investors pay for their financial losses in the crash.
D
Banks only paid a small portion of insurance owed to depositors for their financial losses.
9

In 1929, unresolved economic issues led to

A
an increase in consumer demand.
B
a stock market crash.
C
a stock market boom.
D
an increase in the production of goods.
10

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

A
the government.
B
farmers.
C
consumers.
D
manufacturers.

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