Stock Market Crash
What event on October 24, 1929, is considered the start of the Great Depression?
The Black Thursday
What happened to many banks after the stock market crash as people lost confidence in the economy?
They failed due to bank runs
What natural disaster severley affected farmers in the Great Plains during the Great Depression?
The Dust Bowl
What was the impact of WWI on the global economy leading into the Great Depression?
Debt, economic instability, and disrupted trade
What was the unemployment rate during the Great Depression? ( a percentage)
25%
What is buying stocks with borrowed money called, a practice that contributed to the stock market?
Margin Buying
What is a "bank run"?
When many depositors withdraw their money at the same time
What farming practices contributed to the Dust Bowl?
Over-farming, lack of crop rotation, poor soil management
What is protectionism?
The practice of imposing tariffs to protect domestic industries
What was the New Deal?
A series of programs and reforms enacted by President Franklin D. Roosevelt to combat the Great Depression
What was one reason the stock market crashed in 1929?
Inflation, panic selling, and the collapse of the economy
How did the Federal Reserve contribute to the banking crisis?
By failing to prevent bank failure and not providing enough cash flow
What was the impact of the Dust Bowl on farmers?
Crop failures, loss of land, migration
How did the Hawley-Smoot tariff contribute to the spread of the Great Depression?
It raised tariffs and reduced international trade
How did the Great Depression affect families?
Increased poverty, homeless rate went up, family stress (mostly about money and jobs)
What were "Hoovervilles"?
Shanty towns where people lived in poverty
What was the impact of bank failures on individuals and businessess?
Loss of savings, business closures, reduced investment
How did the government try to help farmers during the Great Depression?
Agricultural Adjustment Act (AAA)
What was the gold standard?
A system where currency is backed by gold
What were some of the social and psychological effects of the Great Depression?
Increased suicide rates, the loss of hope
What role did speculation play in the 1929 stock market crash?
It inflated the stock prices beyond their real value
What was the Glass- Steagall Act?
A law that separated commercial and investment banking
What was the goal of the Agricultural Adjustment Act (AAA)?
To raise crop prices by limiting production
How did the gold standard affect the Great Depression?
It limited the ability of countries to respond the the crisis
How did the Great Depression eventually end?
The outbreak of WWII