World historyLesson 3 of 5 in the course The Interwar Period

The Great Depression: Global Causes, Regional Effects, and Political Responses

5 flashcards · 4 quiz questions · 5 match pairs · 5 fill-in sentences · English

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Summary

The Great Depression began in the United States in 1929 and became a worldwide economic crisis. It was not caused by one event alone: problems in finance, production, household spending, wealth distribution, and international trade reinforced one another.

During the 1920s, the U.S. economy and stock market expanded. New consumer products—including radios, electric ovens, and washing machines—were popular, and some rising company values reflected real business growth. But by the late 1920s, many investors were buying shares mainly because they expected prices to keep rising. This practice, called speculation, pushed stock prices beyond what companies’ actual earnings and sales could justify.

All flashcards

Speculation
Buying shares chiefly in the hope that their prices will rise, rather than because company performance supports their value.
Bank run
A rush by customers to withdraw deposits, which can overwhelm a bank’s available cash.
Gold standard
A monetary system that ties a currency’s value directly to gold.
Comintern
The Soviet-led Communist International, which worked to spread communism internationally.
Totalitarianism
Government control over all aspects of a person’s life.

Quiz questions

  1. What was the purpose of the Federal Deposit Insurance Corporation (FDIC), created in the United States in 1933?Answer: It insured bank deposits to strengthen confidence that savings would be protected if a bank failed.
  2. What did the U.S. Social Security program, established in 1935, include?Answer: Old-age pensions and other forms of support.
  3. Which comparison correctly describes British and French economic policies during the Depression?Answer: Britain lowered tariffs within its empire, while France emphasized austerity and low taxation.
  4. Which feature distinguished Stalin’s Soviet Union from fascist Italy and Nazi Germany?Answer: Its one-party dictatorship was communist and directed the economy through state ownership and central planning.

Based on World History Volume 2, from 1400 by Ann Kordas, Ryan J. Lynch, Brooke Nelson, Julie Tatlock (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.

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