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Key Terms
Econ Problems
Stock Market
Impact of Crash
Hoover
100
Buying on Margin
Buying stock using a loan from a stockbroker
100
How was wealth distributed in the late 1920's
Unevenly - Wealthy %5 received %70 percent of the wealth, and the remaining %95 of the population received the remaining %30 percent of the wealth
100
What is term for ownership of a company
Stock
100
What did investors lose
years of financial gains
100
What was a Hooverville
shanty town in which homeless lived
200
Black Tuesday
Tuesday, October 29, 1929 - Millions of shares of stock are sold, plummeting the value of the stock market
200
What had dried up in the late 1920's that was in abundance in the early 1920's
Credit
200
What is stock sold in
Shares
200
What happened to those who bought on margin
Were forced to sell their stock for a far lesser value and were still in debt to brokers
200
Hoover's belief on government and business
Government should have little role in business
300
Smoot-Hawley Tariff Act
Tariff passed by U.S. with the intent to increase American production, but it just decreased world production and world trade
300
What rose to unrealistic levels
Stock market prices
300
If you buy 10 shares of stock valued at $50 per share, and the value of the stock rises $5. How much profit did you make?
$50
300
Why did banks fail (Two Reasons)
The invested in the market, People withdrew funds, making loans to stockbrokers who in turn made loans to investors
300
What did Hoover urge business and government leaders to do during the Great Depression?
To work voluntarily, not lay off workers or cut wages.
400
Dust Bowl
Hardest hit area during a severe drought in the Great Plains where wind storms would blow the top soil from farms
400
What dropped, causing a decrease in manufactured goods
Consumer Spending
400
Why were more Americans investing in the Stock Market in the 1920's
Prices were always rising, making it look like a sure way to make a lot of money
400
Why did the crash affect foreign countries
U.S. was loaning money to them to repair WWI damages, U.S. was importing less causing foriegn factories to lay off workers
400
What is the Bonus Army Incident
WWI veterans came to Washington, looking for the bonuses they were promised in advance. Army and police used violence against them to drive them away
500
"Bulls"
guards hired by the railroads to chase hoboes off trains
500
Why was buying on margin a economic weakness
Investors are acquiring more debt in their loans taken out from stockbrokers
500
On Thursday October 24, 1929. What eventually stopped the large decrease in stock prices
Number of leading bankers joined together and bought stocks
500
Explain the impact high tariffs had
Raised prices of foreign goods, making citizens inclined to buy domestic goods and increase domestic production. Other countries responded with their own high tariffs, which just decreased exports from all countries, decreasing production, destroying world trade, and worsening the Depression
500
What is the Reconstruction Finance Corporation
One of Hoover's first federal programs - helped struggling banks, insurance companies, and other institutions