1. What is a financial crisis? An industrial depression?
2. Describe the trade, banking and price conditions which obtain just preceding, during and immediately following a crisis.
3. State clearly and explain the movement of prices of stocks, bonds, mortgages, land, commodities generally, wages and interest rates on long time and short time loans, before, during, and after a crisis.
4. Tabulate for a series of years covering periods of prosperity and depression, the prices of stocks, bonds, real estate, and of some commodities.
5. What economic changes occurred in your own community in the panic of 1893-94, or in the years 1903-04, or in 1907-08?
6. Is it possible that the amount of all goods produced shall be in excess of the community's power of consumption?
7. "As the average American can produce far more than he can consume, it has been proved repeatedly that as long as the sale of his products is confined to the home markets, over-production is certain to be a natural consequence of every prolonged period of activity. For half a century, therefore, with regularly recurring seasons of surplus production, there came those inevitable commercial crises which emphasized with increasing force the necessity for foreign markets." (This passage is taken from a reprint of a speech of a congressman.)
Criticize the view as to the cause of commercial crises expressed in the above statement.
8. Is a crisis caused by too much or too little money, or by some other influence?