Category 1
What does it mean to speculate?
👉 Buy stocks and sell quickly for profit
What is a tax on goods brought into a country called?
👉 Tariff
What is a shanty?
👉 A house made from scraps of materials
What is unemployment?
👉 Wanting a job but not being able to find one
What year did the biggest stock market crash happen in the U.S.?
👉 1929
What did Roosevelt promise Americans?
👉 The New Deal
What happens when too many goods are produced?
👉 Prices go down (overproduction)
What is a city “machine”?
👉 A group that controls how a city is run
How do banks make money?
👉 Interest from loans and investments
What is a “bank run”?
DAILY DOUBLE!!
👉 When many people rush to withdraw their money at once
What helped restore trust in banks?
👉 FDIC protection (government guaranteed deposits)
How can lower profits hurt businesses?
👉 Lower wages, fewer jobs, or closing down
What did Roosevelt do to stop bank runs?
👉 Declared a bank holiday
What caused many sharecroppers to lose their jobs?
👉 The Farm Bill
What happens when prices go down for businesses?
👉 Higher sales but lower profits
Who takes responsibility in a welfare state?
DAILY DOUBLE!!
👉 The government
Who promised the New Deal?
DAILY DOUBLE!!
👉 Franklin D. Roosevelt
What did the Supreme Court say about many New Deal programs?
👉 They were unconstitutional
What did Roosevelt give supporters in exchange for votes?
👉 Work projects
Who tried to keep businesses from cutting wages?
👉 Herbert Hoover
Explain how stock market prices rising too high can cause a crash.
👉 Prices exceed actual value → sudden drop → panic selling
Why can overproduction hurt the economy?
DAILY DOUBLE!!
👉 Prices drop → profits drop → businesses struggle
Why did Roosevelt want to appoint more Supreme Court justices?
👉 To support the New Deal and avoid it being struck down
Why did banks run out of money during the Depression?
👉 Too many withdrawals or unpaid loans
Why did Americans think the economy would keep growing after Black Tuesday?
DAILY DOUBLE!!
👉 New inventions, companies making money, electricity expanding