Basic Knowledge
The worst economic catastrophe of the 20th century
What is The Great Depression?
People mostly blame the great depression on
what is the stock market crash
Money is important in the economy, why?
What is make the economy function?
Why did the Great Depression end?
President Franklin D Roosevelt closed ALL banks and ONLY allowed them to reopen if they received a government license.
The year the great depression began
What is 1929?
International trade contribution to the Great Depression
what is Protectionist policies; increasing the cost of imported goods.
Economy begins to breakdown
What is when the quantity or value of money changes
How did the FDIC help the recovery?
provided stability with a permanent deposit insurance system
Four changes in government regulation that came out of the great depression
what is FDIC ( Federal Deposit Insurance Corp.), regulations of security markets, Social Security system, and First national minimum wage.
Economist on capitalism contribution to the great depression
What is Inevitable failure?
Bank deposits
what is bank deposits are created when banks loan out money and deposits contract when customers repay loans.
How did President Franklin D. Roosevelt help end the great depression?
Instilled policies that restored confidence in the banking system and poured money back into the banks.
Economic Concepts
'excesses' of the 1920's?
What is excessive production of commodities, excessive building, excessive financial speculation, or excessive distribution of income and wealth.
'money stock'
Banking Panic
What was Franklin D. Roosevelt's plan called? and what did it do?
The New Deal. It put in place many programs of relief and recovery that employed thousands and made direct cash loans/grants available to individuals, firms, and local governments.
The part of the government that the great depression changed
What is the role of the Federal government in our nations economy
Explanation that has stood the test of time
What is the collapse of U.S Banking system and contraction of the nations money stock.
Deflation's role
it increased the real burden of debt and decreased the amount of income to repay loans.
What do economics believe slowed the recovery? why?
National Recovery Act; by encouraging the formation of industrial cartels, limiting competition, and discouraging employment.