The 1929 Stock Market Crash and the Great Depression

a person who buys stocks on margin is

borrowing money to do so

why did a rise in interest rates ultimately lead to the 1929 stock market crash?

higher interest rates reduced the demands for stocks

which of the following assets is BEST described as illiquid?

real estate

when a bank does not have enough cash to pay the current demands of depositors to withdraw funds, it is

insolvent

during the great recession, the federal reserve rasied interest rates to try and deflate a bubble in

housing

why did the otehr countries also raise their interest rates when the US did so in the late 1920s?

they were trying to maintain their currencies’ fixed exchange rates

which country gave the GREATEST competition to American domestic production of cotton in the 1920s?

egypt 

among the major exports from Argentina to the US during the 1920s was

beef

between the end of WW1 and the end of the 1920s, the numbers of tractors on US farms grew by

10 times

what decade saw a historic peak in federal outlays as a percentage of US gdp?

1940s

the fraction of american farms foreclosed upon 1921 and 1929 was around

1/6

what law prohibited interstate banking in the late 1920s?

McFadden Act

What agricultural pest led to bank runs in florida in april 1929?

fruit fly

what federal organization protects depositors from losing their money when banks are in crisis?

FDIC

how did the federal reserve bank of atlanta reassure bank depositors in florida 1929?

it shipped physical currency to banks in a show of economic force

the most calmitus day of the wall of the 1929 wall street crash is known as black

monday

which year was the Dows Jones Industrial average reach its lowest point?

1932

why did the Dows Jones Industrial Average have a secondary dip in the latter half of the 1930s?

the US entered a recession in 1937

during the 1929 stock market crash, the Dow Jones Industrial Average rebounded briefly after falling around

200 points

in the long run, the US economy has grown at an annual rate of approximately

2%

what factor contributed MOST to the contraction in real GDP during the Great Depression?

harmful gov. policies 

during the great depression, output of goods and services in the US fell by approximately

25%

over the course of the great depression the manufacturing sector of the US was

effectively cut in half

how many companies’ stocks made up the Dow Jones Industrial Average?

30

during hoover administration, prices for agricultural goods fell around

55%

what did not contribute to exceptional productivity growth between 1929 and 1941

abandonment of the gold standard

why did education attainment in the US soar during the great depression?

people stayed in education rather than competing for scarce jobs

between 1900 and 2019, the largest single-year percentage rise in the US GDP took place in the

1940s

a contraction in the money supply often contributes to

deflation