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Causes of the Great Depression · US History

What was the stock market crash of 1929?

  1. A sudden and severe collapse in stock prices that helped trigger the Great Depression
  2. A federal program created specifically to insure private bank deposits for every American nationwide
  3. A peace treaty negotiated among the Allied powers that ended World War One
  4. A law passed by Congress that created the Federal Reserve System
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Correct answer: A sudden and severe collapse in stock prices that helped trigger the Great Depression

The stock market crash of 1929 was a dramatic fall in stock prices after years of speculation. It damaged confidence, destroyed wealth, and helped push the United States into the Great Depression.

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