What Were The Causes And Consequences Of The Wall Street Crash?
Muhtasari
In October 1929 the New York stock market collapsed. For years Americans had poured money into shares, sure that prices would only rise. Then, in a few terrifying days, fortunes vanished, banks closed their doors, and the confidence of a whole nation drained away. The Wall Street Crash is one of the most famous moments in economic history.
But the Crash was a symptom as much as a cause. This lesson explains why the stock market boomed and then broke, how far reckless speculation was to blame, and how the Crash turned into the Great Depression that left millions jobless and homeless. You will also see why Americans rejected President Hoover and turned to Franklin Roosevelt in 1932, setting the scene for the New Deal.
Malengo
- How far was speculation responsible for the Wall Street Crash?
- What impact did the Crash have on the economy?
- What were the social consequences of the Crash?
- Why did Roosevelt win the election of 1932?
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- Buying shares by paying only a fraction of the price and borrowing the rest was known as: A. Hire purchase B. Buying on the margin C. Laissez-faire D. A trust Answer: B
- The Wall Street Crash took place in: A. October 1928 B. October 1929 C. November 1932 D. March 1933 Answer: B
- A 'Hooverville' was: A. A government relief office B. A type of share C. A shanty town of homeless people D. A New Deal agency Answer: C
- By 1933 unemployment in the USA had risen to about: A. 3 million B. 7 million C. 13 million D. 25 million Answer: C
- Roosevelt won the 1932 election largely because he promised: A. To continue laissez-faire B. A New Deal of active government and relief C. To raise tariffs further D. To repeal Prohibition only Answer: B
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