Effects of the Wall Street Crash

• When did the value of shares in the American stock market collapse?

  October 1929
• What was the reaction of Germans to the collapse of the American stock market?

  They panicked about their bank accounts
• Which bank is mentioned as going bust during the crisis?

  German Civil Servant Bank
• What caused banks to demand loans from German businesses?

  People queued to withdraw their savings
• How did the banking crash affect production in German businesses?

  Many businesses cut back production
• What was the immediate effect of the banking crash on employment?

  Unemployment increased as businesses reduced costs
• What was the trend in unemployment from September 1929 to the end of 1932?

  Rose from 1.3 million to over 6 million
• How did reduced consumer spending affect businesses during the crisis?

  It cut business profits further
• What cycle of events did the unemployment lead to in the economy?

  Less spending led to more unemployment
• When did the value of shares in the American stock market collapse?

  October 1929
• What were the key events following the stock market collapse in October 1929?

  • Panic among Germans about bank accounts
  • Banks demanding loans from businesses
  • Businesses cutting back production
  • Rise in unemployment
  • Decrease in consumer spending
• What was the reaction of Germans to the collapse of the American stock market?

  They panicked about their bank accounts
• Which bank is mentioned as going bust during the crisis?

  German Civil Servant Bank
• What caused banks to demand loans from German businesses?

  Many people queued to withdraw savings
• How did the banking crash affect production in German businesses?

  Many businesses cut back production
• What was the consequence of businesses reducing costs?

  Unemployment increased as workers were sacked
• How did unemployment affect consumer spending?

  Less money led to reduced consumer spending
• What was the unemployment rate in Germany by the end of 1932?

  Over 6 million
• What was the unemployment rate in Germany in September 1929?

  1. 3 million
• What were the key events leading to the rise in unemployment during the banking crash?

  • Stock market collapse in October 1929
  • Panic among Germans about bank accounts
  • Bank runs leading to bank failures
  • Demand for loan repayments from businesses
  • Businesses cutting back production
  • Increased unemployment due to layoffs
  • Reduced consumer spending due to unemployment