Wall Street Crash of 1929
What do you know about Wall Street Crash of
1929? Try this US History Made Easy Quiz. "Check Your Answers" at the end of
Three phrases - Black Thursday, Black Monday, and Black Tuesday - are used
to describe this collapse of stock values. All three are appropriate, for
the crash was not a one-day affair. The initial crash occurred on Black
Thursday (October 24, 1929), but it was the catastrophic downturn of Black
Monday and Tuesday (October 28 and October 29, 1929) that precipitated
widespread panic and the onset of unprecedented and long-lasting
consequences for the United States. The collapse continued for a month.
2. The October 1929 crash came during a period of declining real estate
values in America (which peaked in 1925) near the beginning of a chain of
events that led to the Great Depression, a period of economic decline in
the industrialized nations. This led to the institution of landmark
financial reforms and new trading regulations.
3. It was a precursor to the Crash, was a time of prosperity and excess
in the city, and despite warnings against speculation, many believed that
the market could sustain high price levels. What was the period called?
- The Gay '90s
- World War I
- The Roaring Twenties
4. After a five-year run when the world saw the Dow Jones Industrial
Average increase in value fivefold, prices peaked at 381.17. What was the
- September 3, 1929
- September 13, 1929
- September 23, 1929
5. At 1 p.m. on Friday, October 25, several leading Wall Street bankers
met to find a solution to the panic and chaos on the trading floor. Who
was NOT at the meeting?
- Morgan Bank
- Chase Bank
- Lowndes Bank
6. How much did the Dow Jones Industrial Average lose on Black Monday,
October 28, 1929?
7. How much did the Dow Jones Industrial Average lose on Black Tuesday,
October 29, 1929?
8. In 1931, the Pecora Commission was established by the U.S. Senate to
study the causes of the crash. The U.S. Congress passed a bill 1933, which
mandated a separation between commercial banks, which take deposits and
extend loans, and investment banks, which underwrite, issue, and
distribute stocks, bonds, and other securities. What was the legislation?
- Glass-Steagall Act
- Connors-Murphy Act
- Byrd-Montgomery Act
9. The Wall Street Crash had a major impact on the U.S. and world
economy, and it has been the source of intense academic debate
[historical, economic and political] from its aftermath until the present
10. Who wrote "It was not the downturn in the business cycle,
trade protectionism or the 1929 stock market crash that plunged the
country into deep depression. It was the collapse of the banking system
during three waves of panics over the 1930-33 period."
- Joseph Schumpeter
- Thomas K. McCraw
- Milton Friedman