These questions will help you prepare for the lesson quiz. Be sure to read the feedback carefully for any questions you answer incorrectly, and review those topics before leaving this lesson and taking the quiz.
Who handled the buying and selling of stocks on Wall Street?
- banks
- stockbrokers
- speculators
- investors
Stockbrokers took orders to buy or sell stocks on the stock exchange from individual investors (some of whom were speculators).
Stockbrokers took orders to buy or sell stocks on the stock exchange from individual investors (some of whom were speculators).
Stockbrokers took orders to buy or sell stocks on the stock exchange from individual investors (some of whom were speculators).
Stockbrokers took orders to buy or sell stocks on the stock exchange from individual investors (some of whom were speculators).
What is a margin call?
- when an investor is asked to pay what they owe on stock bought on margin
- when a stockbroker sells off an investor's stock and keeps the money
- when investors panic and begin a sell-off of all their stock
- when the federal government threatens to cut off money to banks
When investors are asked to pay their stockbroker what they owe them from buying their stocks on margin, that is a margin call. The result of a margin call can be the broker selling off the stock and keeping the profit.
When investors are asked to pay their stockbroker what they owe them from buying their stocks on margin, that is a margin call. The result of a margin call can be the broker selling off the stock and keeping the profit.
When investors are asked to pay their stockbroker what they owe them from buying their stocks on margin, that is a margin call. The result of a margin call can be the broker selling off the stock and keeping the profit.
When investors are asked to pay their stockbroker what they owe them from buying their stocks on margin, that is a margin call. The result of a margin call can be the broker selling off the stock and keeping the profit.
How did the Federal Reserve Board alarm investors in March 1929?
- It began monitoring stock sales on Wall Street to stop speculation.
- It forbade the RCA speculators to sell off that stock.
- It cut off the money it was planning to give to banks.
- It threatened to drastically reduce the amount of money it gave to banks.
The Board did not actually take any action, but it threatened to reduce the amount of money it gave banks to lend to investors, and this threat of regulation caused the alarm.
The Board did not actually take any action, but it threatened to reduce the amount of money it gave banks to lend to investors, and this threat of regulation caused the alarm.
The Board did not actually take any action, but it threatened to reduce the amount of money it gave banks to lend to investors, and this threat of regulation caused the alarm.
The Board did not actually take any action, but it threatened to reduce the amount of money it gave banks to lend to investors, and this threat of regulation caused the alarm.
What happened on Black Thursday?
- Speculators began a sell-off, trying to make a profit before the Federal Reserve Board began regulating the stock market.
- Banks cut off loans to investors, who began to sell off their stock to try to get their money back.
- Stockbrokers began a sell-off of stock that grew and grew until the stock market crashed.
- Investors rushed to their banks to withdraw all their money, which led to many banks having to close.
Stockbrokers, nervous about weak trading the day before, tried to sell stocks before they lost any more value; this escalated into a panic and a crash.
Stockbrokers, nervous about weak trading the day before, tried to sell stocks before they lost any more value; this escalated into a panic and a crash.
Stockbrokers, nervous about weak trading the day before, tried to sell stocks before they lost any more value; this escalated into a panic and a crash.
Stockbrokers, nervous about weak trading the day before, tried to sell stocks before they lost any more value; this escalated into a panic and a crash.
How did the manufacturing slowdown in 1929 affect the stock market?
- It made fewer stocks available, which drove up their price.
- It led to the panic of March 1929.
- It forced some manufacturers to print more stock.
- It didn't--people kept buying more stocks.
Even though the slowdown meant many people lost their jobs and many companies issuing stock now had much lower real value, people continued to buy stock, hoping for a lucky payoff.
Even though the slowdown meant many people lost their jobs and many companies issuing stock now had much lower real value, people continued to buy stock, hoping for a lucky payoff.
Even though the slowdown meant many people lost their jobs and many companies issuing stock now had much lower real value, people continued to buy stock, hoping for a lucky payoff.
Even though the slowdown meant many people lost their jobs and many companies issuing stock now had much lower real value, people continued to buy stock, hoping for a lucky payoff.
Why did so many banks fail after the Stock Market Crash of 1929?
- They no longer had enough money to operate.
- They were forced to sell all their stock.
- The Federal Reserve Board cut the amount of money it gave them.
- Their stock value dropped dramatically.
Banks ran out of money in a few ways: Their customers couldn't make payments on their loans; they lost money on their stocks; their customers panicked and withdrew all their money. Whatever the reason, bank failure was the result of not having enough money to stay in business.
Banks ran out of money in a few ways: Their customers couldn't make payments on their loans; they lost money on their stocks; their customers panicked and withdrew all their money. Whatever the reason, bank failure was the result of not having enough money to stay in business.
Banks ran out of money in a few ways: Their customers couldn't make payments on their loans; they lost money on their stocks; their customers panicked and withdrew all their money. Whatever the reason, bank failure was the result of not having enough money to stay in business.
Banks ran out of money in a few ways: Their customers couldn't make payments on their loans; they lost money on their stocks; their customers panicked and withdrew all their money. Whatever the reason, bank failure was the result of not having enough money to stay in business.
Summary
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