INSTALLMENT BUYING
to buy CONSUMER PRODUCTS such as
REFRIGERATORS
CARS
How was installment buying used?
increased trading and rising stock prices
What is the bull market?
banks invested people's deposits to unsound investments.
What are unwise loans?
PRODUCE MORE GOODS THAN PEOPLE WERE BUYING
What is overproduction?
companies grew because people were able to buy goods on credit.
How did installment buying help boost the 1920s economy?
decreased trading and stock prices-little activity
What is the bear market?
stock prices consistently went up during the 1920s
Why did people buy stocks "on margin?"
A FARM HAS MORE CROPD THAN IT COULD SELL PRICES GO DOWN AND THE UNSOLD CROPS ROT.
How did a high surplus or crops hurt the agricultural economy?
BUY NOW-PAY LATER
What was installment buying?
It was an easy way to make money for investors because because stock prices rose during the 1920s.
Why did people generally buy and sell stocks in the 1920s?
to buy stocks on credit and only pay for a part of the stock.
What is buying in margin?
high taxes on imported goods.
What are tariffs?
an investor shares ownership of a company.
What is stock?
stocks
What did people buy on margin?
people decreased or stopped buying goods.
What is underconsumption?
ordinary people became rich overnight.
Why did so many people invest in the stock market during the 1920s?
banks closed down from bad investments and people lost their life savings.
Why did banks fail?