What were the causes of the stock market crash and the Great Depression quizlet?

(1929)The steep fall in the prices of stocks due to widespread financial panic. It was caused by stock brokers who called in the loans they had made to stock investors. This caused stock prices to fall, and many people lost their entire life savings as many financial institutions went bankrupt.

What were the causes of the stock market crash and the Great Depression?

By then, production had already declined and unemployment had risen, leaving stocks in great excess of their real value. Among the other causes of the stock market crash of 1929 were low wages, the proliferation of debt, a struggling agricultural sector and an excess of large bank loans that could not be liquidated.

What factors caused the stock market crash quizlet?

Terms in this set (7)

  • Uneven Distribution of Wealth. …
  • People were buying less. …
  • overproduction of goods and agriculture. …
  • Massive Speculation Based on Ignorance. …
  • Many stocks were bought on margin. …
  • Market Manipulation by a Small Group of Investors. …
  • Very Little Government Regulation.
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What were 4 main causes of the Great Depression quizlet?

Terms in this set (4)

  • #1. Stock Market Crash. -Throughout the 1920s, people invested in the stock market in hopes of making money. …
  • #2. Banking Crisis. -People deposit money in banks for safe-keeping. …
  • #3. Overproduction. -Industry thrived in the 1920s because of mass production. …
  • #4. Under-consumption.

What were some of the causes of the Great Depression quizlet?

5 Causes of the Great Depression

  • Buying on Credit.
  • Underconsumption/ Overproduction.
  • Unequal Distribution of Wealth.
  • Margin Buying.
  • Stock Market Crash.

What two factors caused the stock market crash?

What caused the 1929 stock market crash?

  • Overconfidence and oversupply: Investors and institutions were piling into the stock market during the early 1920s as the economy expanded. …
  • Buying on margin: Margin is the practice of taking a loan to buy stocks which can amplify gains and losses.

What causes a market crash?

Generally speaking, crashes usually occur under the following conditions: a prolonged period of rising stock prices (a bull market) and excessive economic optimism, a market where price–earnings ratios exceed long-term averages, and extensive use of margin debt and leverage by market participants.

What are the effects of stock market crash?

The stock market crash crippled the American economy because not only had individual investors put their money into stocks, so did businesses. When the stock market crashed, businesses lost their money. Consumers also lost their money because many banks had invested their money without their permission or knowledge.

What were 5 causes of the stock market crash?

Equally relevant issues, such as overpriced shares, public panic, rising bank loans, an agriculture crisis, higher interest rates and a cynical press added to the disarray. Many investors and ordinary people lost their entire savings, while numerous banks and companies went bankrupt.

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What are the causes of the Great Depression?

What were the major causes of the Great Depression? Among the suggested causes of the Great Depression are: the stock market crash of 1929; the collapse of world trade due to the Smoot-Hawley Tariff; government policies; bank failures and panics; and the collapse of the money supply.

What caused the great crash of 1929 quizlet?

(1929)The steep fall in the prices of stocks due to widespread financial panic. It was caused by stock brokers who called in the loans they had made to stock investors. This caused stock prices to fall, and many people lost their entire life savings as many financial institutions went bankrupt.

What were the 6 causes of the Great Depression quizlet?

List the 6 causes of the Great Depression. Overproduction, Canadian reliance on exporting staple products, Canadian dependence on the United States, economic protectionism, internal debt from WW1, stock market crash.