Today in class we finished our group discussion about the Stock Market crash and the Great Depression. And we watched a movie and answered 4 questions over the movie.Cause of the Stock Market Crash- Overspeculation during the 1920’s.- Over production goods.- Buying on margin.- Uneven distribution of wealth in the 1920’s.- Too much borrowing from banks.- Stock prices grossly inflated; didn’t have “real” value.- Massive Fraud and Illegal Activity.- Federal Reserve Policy.The Great CrashEffectsBanks close.People loose there life savings.Investors and businesses lose millionsThousands of banks fail, savings are wiped outBusinesses cut production, lay off thousands of workersUnemployment rises, consumer base drops furtherEconomic contraction in the United States spreads to EuropeThe Great Depression sets inThe Crash of 1929 Video1. Causes2. Story of SMC3. What is pooling4. What did the Federal Reserve Board do?Answers1.2.
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