Boom and Bust

Question 1

In the 1920s, what did businesses and industries do that caused the economy to slow down?

Revolt · Accepted Answer

They overproduced goods.

Question 2

Which is an example of using credit?

Revolt · Accepted Answer

A consumer buys an item and promises to pay later.

Question 3

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 4

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

Revolt · Accepted Answer

overproduction, too many credit purchases, stock speculation

Question 5

Which best explains why people failed to make their promised payments on items during the 1920s?

Revolt · Accepted Answer

They bought too much.

Question 6

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 7

A strong stock market depends on

Revolt · Accepted Answer

overall confidence in the economy.

Question 8

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

Revolt · Accepted Answer

consumers.

Question 9

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

Revolt · Accepted Answer

Consumers bought too many goods they could not afford.

Question 10

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.

Boom and Bust Answers