The Great Depression And The League Of Nations Quiz

The Wall Street Crash of 1929 is the correct answer because it was one of the major triggers of the Great Depression. The crash, which occurred in the United States, led to a severe economic downturn that spread globally. It caused a collapse in stock prices, widespread panic selling, and a sharp decline in consumer spending and investment. The crash exposed the weaknesses in the financial system and led to a chain reaction of bank failures, unemployment, and a decrease in industrial production, all of which contributed to the Great Depression.

During the Great Depression, the USA demanded the money it had loaned out to European countries back. This had a significant impact on the rest of the world as it led to a contraction in global trade and financial instability. As the USA called in its loans, European countries struggled to repay, leading to economic and political turmoil. This demand for repayment contributed to the deepening of the global economic crisis and exacerbated the already dire situation in many countries.

During the Great Depression, the League of Nations should have tried to discourage nations from becoming too protective of their economies and encourage world trade. This approach would have helped to prevent the rise of economic nationalism and trade barriers, which were major contributing factors to the worsening of the global economic crisis. By promoting open markets and international cooperation, the League could have facilitated economic recovery and stability, fostering a more interconnected and prosperous global economy.

The League of Nations attempted to impose economic sanctions as a means of exerting pressure or punishment on a country that violated international law or engaged in aggressive actions. However, these sanctions did not effectively achieve their intended goals. Sanctions involve imposing trade restrictions, cutting off economic aid, or freezing assets to isolate and weaken the targeted country economically. In this case, the League's attempt to use economic sanctions as an economic "weapon" did not succeed, possibly due to factors such as lack of international cooperation, ineffective implementation, or the targeted country's ability to circumvent the sanctions.

During the Great Depression, some countries responded by implementing high tariffs on imported products. This was done in an attempt to protect domestic industries and stimulate the economy by encouraging people to buy locally produced goods. However, this action had the unintended consequence of causing international trade to decrease, as other countries retaliated by imposing their own tariffs. This further worsened the economic downturn and contributed to the global nature of the Great Depression.

The correct answer is "Prices decreased dramatically." During a depression, there is typically a decrease in demand for commodities due to a decline in economic activity. This decrease in demand leads to a surplus of commodities in the market, causing prices to drop. As a result, commodity prices would decrease dramatically during a depression.

During the 1920s, America experienced three recessions. This was a decade of economic turbulence, with the first recession occurring in 1920-1921, followed by the recession of 1923-1924, and finally the Great Depression which began in 1929. These recessions were marked by significant declines in economic activity, including decreases in production, employment, and trade. The multiple recessions during this period had a profound impact on the American economy and shaped the economic policies and regulations that followed.