Question

1. Read through these choices. Pick out FOUR primary causes of the Great Depression:

A. Wealthy investors purchased low-income homes on credit

B. An increase in spending in overseas markets

C. Investors making high-risk purchases that they hoped would pay off quickly

D. The stock market crash of 1929

E. Buying "on margin", or investing with borrowed money

F. Interest rates were set very low, so banks were able to keep less cash on hand


2. Which one of the following statements describes the practice of "speculation"?

A. Buying stocks using borrowed money, then paying it back immediately.

B. Selling stocks that were not backed by successful companies

C. Buying stocks using borrowed money, in the hopes of making great profit.

D. Selling stocks meant only for international companies.

Answer 1

1. The FOUR primary causes of the Great Depression are:

C. Investors making high-risk purchases that they hoped would pay off quickly
D. The stock market crash of 1929
E. Buying "on margin", or investing with borrowed money
F. Interest rates were set very low, so banks were able to keep less cash on hand

2. The statement that describes the practice of "speculation" is:

C. Buying stocks using borrowed money, in the hopes of making great profit.