1. Chapter 22 “Crash and Depression”
Section 1 “The Stock Market Crash” Pg

2. Vocabulary Dow Jones Industrial Average Black Tuesday Great Crash
Business cycle
Great Depression

3. 1. What events led to the stock market’s Great Crash in 1929?
2. Why did the Great Crash produce a ripple effect throughout the nation’s economy?
3. What were the main causes of the Great Depression?
4. What could cause a country’s Gross National Product to decrease?
5. How did the unstable economy in the 1920s contribute to the Great Depression?
6. How did the Great Depression have such a huge impact on the economies of other countries?
7. Many people today use credit cards and charge accounts to buy on credit. Is this practice as dangerous now as it was in 1929? Why or Why Not?

4. Review Prepare Response Cards

5. 1. What impact did the Great Depression have on the world's economic markets?
A) It sparked a worldwide economic contraction.
B) It had very little effect on European markets, but a great effect on Latin American markets.
C) It had very little effect on Asian markets, but a great effect on European markets.
D) It had only a modest effect on world markets because of World War I economic alliances.

6. A) It sparked a worldwide economic contraction.

7. 2. Bank runs were
A) long trips made by bankers to obtain money from Federal Reserve banks during the Depression.
B) erected by Dust Bowl farmers to prevent soil from eroding.
C) not common until after the Depression had ended.
D) mass withdrawals of money from banks.

8. D) mass withdrawals of money from banks.

9. 3. The Dow Jones is a(n)
A) service that tracks the nation's business cycles.
B) average of stock prices of major industries.
C) type of risky loan that can hurt a bank.
D) statistical method for determining investor confidence.

10. B) average of stock prices of major industries.

11. 4. In the late 1920s, most Americans felt the economy would
A) soon collapse.
B) continue to prosper.
C) begin to slow down.
D) continue to decline.

12. B) continue to prosper.

13. 5. Overspeculation was common in the 1920s among
A) the unemployed.
B) investors in stocks.
C) members of Herbert Hoover's administration.
D) penny auction participants.

14. B) investors in stocks.

15. 6. True/False
Initially the effects of the Crash were felt only by those who were heavily invested in the stock market.

16. True

17. 7. True/False
With money and more incentive to produce more goods, factories throughout the country began to open after the Market Crash.

18. False

19. True/False
Monetary Policy was not to blame for the Great Depression.

20. False