AP Success - AP US History: Prelude to Great Depression in the 1920s
"The Big Stock Market Crash," Frederick Lewis Allen, 1946"How many Americans actually held stock on margin during the fabulous summer of 1929 there seems to be no way of computing, but there were probably more than 1,000,000. As one walked up the aisle of the 5:27 commuters' local, or found one's seat in the trolley, two out of the three newspapers were open to the stock-market quotations. Branch offices of big Wall Street houses blossomed in cities and villages everywhere. The broker found himself regarded with new wonder and esteem; ordinary people hung upon his every word."
Question 1
According to Frederick Lewis Allen, which of the following best describes the public attitude towards the stock market during the summer of 1929?
The stock market was seen as a dangerous gamble, avoided by most Americans.
The stock market was an exclusive interest of the wealthy and well-educated.
The stock market was a topic of widespread public interest and discussion.
The stock market was largely ignored by the general public.
Question 2
The practice of buying stock 'on margin' during the 1920s is best described as:
Pooling resources with others to buy a diversified portfolio of stocks.
Purchasing stocks with borrowed money, paying only a fraction of the price upfront.
Buying stocks outright with the expectation of immediate high returns.
Investing in stocks through government-issued bonds.
Question 3
The proliferation of branch offices of Wall Street firms in the 1920s suggests which of the following about the stock market?
It became more accessible to people outside of New York City.
It was dominated by a few large Wall Street firms.
It was heavily regulated by the federal government.
It was becoming increasingly centralized in Wall Street.
Question 4
Frederick Lewis Allen's observation that the broker was 'regarded with new wonder and esteem' indicates which of the following about the period?
Stockbrokers were seen as responsible for the impending stock market crash.
Stockbrokers were generally mistrusted due to their association with Wall Street.
Stockbrokers were becoming less relevant due to the rise of independent investing.
Stockbrokers gained elevated social status due to the boom in the stock market.
Question 5
The reference to 'the 5:27 commuters' local' and 'the trolley' in Allen's account is indicative of which broader historical trend of the 1920s?
The segregation of transportation by class and socioeconomic status.
The nationalization of transportation infrastructure.
The decline of public transportation in favor of private automobiles.
The growth of suburbs and the reliance on mass transit for commuting to urban centers.
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