Which Conditions Are Most Characteristic Of An Economic Depression

Question: The Stock Market boom of the 1920s was characterized by a big increase in the number of people who bought stock chiefly:

Answer: to make big gains for rising stock prices

Question: Betting that stocks would increase so you can make a profit and sell your stocks is called:

Answer: speculation

Question: Which of the following was NOT a cause of the Great Depression (industrial overproduction, unequal distribution of wealth/income, excessive stock speculation, government overspending)?

Answer: government overspending

Question: Buying stocks on margin contributed to the Crash because:

Answer: As prices fell, stockholders either had to sell their stock or pay more cash

Question: A “bull” market is a period of:

Answer: rising stock prices

Question: A “bear” market is a period of:

Answer: declining stock prices

Question: During the 1920s which of the following increased? (farmers debts, prices for farm products, foreign demand for US products, domestic demand for US farm products)

Answer: farmers debts

Question: Whose fortunes were most dramatically changed on the day known as Black Tuesday?

Answer: Bankers

Question: During the 1920s, the main reason that US Industry could not sell all the goods it produced was that:

Answer: consumers lacked sufficient buying power to purchase goods

Question: Who was president on “Black Tuesday”?

Answer: Herbert Hoover