Question

1. In 1929, the stock market crashed because
A) The Federal Reserve increased the money supply
B) Germany creased reparation payments to the U.S.
C) Investors lost confidence in the market and rushed to sell their shares
D) Depositors lost their investments and tried to withdraw all of the savings from the banks
2. Which factor contributed to the spread of the Great Depression overseas?
A) Europe increased trade to the U.S.
B) Congress lowered tariffs on the foreign imports
C) American industry reduced production levels
D) The U.S. curtailed investment in Europe

Answer 1

3) Which of these factors helped hide economic problems in the 1920s?
A) Investors lost confidence in the market
B) Farmers sold crop surpluses to pay off their debts
C) Americans purchased many consumer goods on credit
D) Wages increased at the same pace as worker productivity

Answers:
1) C- Investors lost confidence in the market and rushed to sell their shares
2) D- The U.S. curtailed investment in Europe
3) C- Americans purchased many consumer goods on credit