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2O Democracy and Nazism: Germany, 1918–1945

The Wall Street Crash and the German Banks

  • 3 things to know
  • Component 2

Overview

Recall questions on the date of the crash, the recall of American loans and the effect on German banks and businesses.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

What happened to American loans in Germany following the Wall Street Crash?

Key term

What was the approximate level of German unemployment in 1929?

Key term

What psychological effects did the Depression have on the German population?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    In what month and year did the Wall Street Crash occur?

    Model answer

    October 1929

  2. 2

    What happened to American loans in Germany following the Wall Street Crash?

    Model answer

    American loans were recalled (withdrawn) from Germany

  3. 3

    What was the effect of the withdrawal of American loans on German banks?

    Model answer

    German banks collapsed due to their dependence on foreign credit

  4. 4

    Why did German businesses fail following the Wall Street Crash?

    Model answer

    They were dependent on foreign credit which was withdrawn when American loans were recalled

  5. 5

    What was the approximate level of German unemployment in 1929?

    Model answer

    Approximately 1.3 million

  6. 6

    By early 1932, how high had German unemployment risen?

    Model answer

    Over 6 million

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