THE ROARING 20S 1920 1929
1920S AMERICAN CULTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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People would by less than they could afford
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People could not afford monthly payments, so they would not be able to finish paying for the product
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People paid too much up front for the product
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None of the above
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Detailed explanation-1: -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.
Detailed explanation-2: -Millions of Americans used credit to buy all sorts of things, like radios, refrigerators, washing machines, and cars. The banks even used credit to buy stocks in the stock market. This meant that everyone used credit, and no one had enough money to pay back all their loans, not even the banks.
Detailed explanation-3: -FDR’s credit policies during the Great Depression had a lasting and positive effect on the credit industry, making banks and investments much safer and less risky. Under FDR, Congress created the Federal Deposit Insurance Corporation (FDIC), which guaranteed that deposits over $2, 500 were secure and could not be lost.