Starter quiz

  • Write the missing word. ______ is when investors purchase shares, often with borrowed money, in the hope of selling them off in future for a profit.
    • 'Speculation' ✓
  • Which statement is accurate?
    • By the late 1920s, overproduction was only a problem in agriculture.
    • By the late 1920s, overproduction was only a problem in industry.
    • By the late 1920s, overproduction was a problem in agriculture and industry.  ✓
  • How much did the share price of the Radio Corporation of America change by between September and November 1929?
    • It decreased by 94%.  ✓
    • It decreased by 44%.
    • It stayed the same.
    • It increased by 44%.
    • It increased by 94%.
  • What was buying on the margin?
    • Purchasing cars using large bank loans to cover 90% of the price.
    • Purchasing houses using large bank loans to cover 90% of the price.
    • Purchasing radios using large bank loans to cover 90% of the price.
    • Purchasing shares using large bank loans to cover 90% of the price.  ✓
  • Why were foreign tariffs an economic problem for the USA?
    • American companies earned more abroad than at home.
    • American companies struggled to sell off their surplus products.  ✓
    • American companies were encouraged to overproduce.
  • Starting with the earliest, sort the following events of the Wall Street Crash into chronological order.
    • 1
      ⇔
      Company profits begin to decline.
    • 2
      ⇔
      Cautious investors start selling off shares.
    • 3
      ⇔
      Black Thursday and Black Tuesday.
    • 4
      ⇔
      Many speculators and shareholders are bankrupted.
    • 5
      ⇔
      659 banks fail across the USA.
+