In 1873, the United States entered its largest economic depression. What is this event commonly known as?

• A. Panic of 1873
• B. Panic of 1893
• C. Great Depression
• D. Black Tuesday

Answer: (A)

This question tests your knowledge of a major late-19th-century economic crisis and its common name. In 1873, railroad speculation helped trigger a bank failure and a credit crunch that brought widespread business failures and unemployment. This sharp downturn lasted for several years and is commonly known as the Panic of 1873. It marks a key economic moment during the Reconstruction era, influencing politics and policy as the nation adjusted after the Civil War. The other events listed happened at different times: Panic of 1893 occurred later in the 1890s; the Great Depression began in 1929; Black Tuesday refers to the 1929 stock market crash. So the event described for 1873 is the Panic of 1873.