We are now going into the study of the Depression in USA. As usual, the Depression was the result of a variety of causes.
To start learning more about thses causes, we are going to start by watching 2 videos.
Watch the 1st one up to minute 8:00 to later answer the following questions:
1. Make a list of the characteristics of the 1920s mentioned in the video with their positive and negative aspects.
2. How did the Banking Crisis contribute to the Depression? What really destroyed the economy related to bank failure?
3. How did deflation contribute to the Banking Crisis?
4. What was the Federal Reserve to blame for?
5. How did WW1 contribute to the World Depression? Explain how the “frozen credit” in USA damaged the economies of Germany, France and Britain.
6. How did Tariffs contribute to the Depression?
And the 2nd one to better understand buying “on margin”.