In 1929, many investors bought stock “on margin,” using borrowed money. When prices fell, brokers demanded more cash. If investors could not pay, brokers sold the stock to cover the loan. Forced selling could deepen the crash and strain banks.
Use the historical document(s) and the short readings in the left panel to answer the associated questions.
Use the historical document(s) and the short readings in the left panel to answer the associated questions.
In 1929, many investors bought stock “on margin,” using borrowed money. When prices fell, brokers demanded more cash. If investors could not pay, brokers sold the stock to cover the loan. Forced selling could deepen the crash and strain banks.
Which conclusion is best supported by the document and reading stimulus about why the Great Depression became severe?
Using at least two specific pieces of evidence from the document and/or the reading stimulus, explain how buying on margin could increase financial risk for both individual investors and banks.
Write one well-formed paragraph.
Use evidence from the stimulus to describe one short-term effect on banks and one effect on the broader economy that could help explain the Great Depression.
Write one well-formed paragraph.
Based on the reading stimulus, how could many margin calls happening at the same time affect stock prices?
Which detail from the document best supports the idea that risky investing contributed to the stock market collapse?
In the mid-1930s, drought and windstorms ruined farmland across the Great Plains. Many families lost crops, income, and sometimes their homes. Some packed what they could carry and traveled to search for work. These hardships show how the Dust Bowl intensified the Great Depression.
Which statement is best supported by BOTH the reading stimulus and the photo?
Based on the stimulus, which effect of the Dust Bowl would most directly increase hardship for American businesses during the Great Depression?
Which detail in the photo best supports the idea that families were forced to leave because of Dust Bowl conditions?
Using at least two specific pieces of evidence from the photo and/or the reading stimulus, explain how the Dust Bowl could affect a family’s daily life.
Write one well-formed paragraph.
Use evidence from the stimulus to explain one effect of the Dust Bowl on American businesses and one effect on American families during the Great Depression.
Write one well-formed paragraph.
In 1933–1934, President Franklin D. Roosevelt’s New Deal created federal programs to provide relief and revive the economy. These programs offered jobs or assistance to people facing unemployment and hardship. The document below is a notice for a local public works project funded by the federal government.
Based on the reading stimulus and the document, which goal of the New Deal is most directly shown?
Use evidence from the stimulus to explain one way this New Deal effort could change the relationship between citizens and the federal government.
Write one well-formed paragraph.
Which conclusion is best supported by the stimulus about how New Deal programs could have long-lasting effects on the role of government?
Which detail from the document best supports the idea that the federal government expanded its role in the economy during the New Deal?
Using at least two specific pieces of evidence from the document and/or the reading stimulus, explain how this New Deal program attempted to address hardship during the Great Depression.
Write one well-formed paragraph.