THE ROARING 20S 1920 1929
AMERICAN POLITICS IN THE 1920S
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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buying goods on credit
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saving rather than spending
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continuing shortages of consumer goods
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imposing low tariffs on imported products
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Detailed explanation-1: -Investing in the speculative market in the 1920s led to the stock market crash in 1929, which wiped out a great deal of nominal wealth. Most historians and economists agree that the stock market crash of 1929 wasn’t the only cause of the Great Depression.
Detailed explanation-2: -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-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.
Detailed explanation-4: -Although the 1920s were prosperous, speculation in the stock market, risky lending policies, overproduction, and uneven income distribution eventually undermined the economy and led to the Great Depression.