Final Practice Test Questions - Short Answer

Question 1

What factors contributed to the superficial prosperity of the 1920s?

Think about:

• farming and industry
• the use of credit
• the stock market, speculation, and buying on margin
• attitudes of politicians

Answer 1

• Farming businesses / numerous industries saw a huge boom in sales from the war, in US and other stricken areas
• Sales soon declined but - wanting to live life to the fullest and focus on American prosperity - they failed to see the signs of the decline
• Credit and BOM made people think they had more money than before, and the stock market was being regulated to dangerous heights
• Nobody wanted to think it could end since things were going so great - not even politicians