Advertising, Stock Market and Credit

Question 1

What did mass produced products become the foundation of?

Answer 1

An enormous boom in consumer goods

Question 2

What happened to the prices of telephones, radios, vacuum cleaners and washing machines as they were mass produced on a vast scale?

Answer 2

They were cheaper

More people could buy them

Question 3

Example of a household electrical company

Answer 3

Hoover

Question 4

What proposed the latest, most efficient techniques?

Answer 4

The Industrial Efficiency Movement

Question 5

What techniques were used by big industries to get people to buy their goods?

Answer 5

Sophisticated sales

Marketing techniques

Question 6

What had first been used during the war to get America to support war effort?

Answer 6

Mass nationwide advertising

Question 7

Where had many advertisers learned advertising techniques?

Answer 7

War time techniques

Question 8

What agencies did many advertisers set up?

Answer 8

Consumer items-
Cars
Cigarettes
Clothing

Question 9

What advertisements encouraged Americans to spend?

Answer 9

Posters
Radio
Travelling salesmen

Question 10

What could people do if they didn’t have the money to spend?

Answer 10

Borrow it easily

Buy now pay later hire schemes/ buying on credit

Question 11

What encouraged the stock market boom?

Answer 11

Confidence that prosperity would continue

Question 12

How did people gain a percentage of a company?

Answer 12

Bought shares in companies and gained percentage of profits

Question 13

How did companies invest and expand more?

Answer 13

Many people bought shares in the mid 20s and this put up their price

Question 14

When did people buying shares stop working in favour of the investors and companies?

Answer 14

When people started selling shares for large profits

Question 15

How could people previously borrow money?

Answer 15

If they were well off or if they pawned items in pawn shops

Question 16

What was buying things on the never never or hire purchase?

Answer 16

Putting down a small deposit and paying the rest off over time

Question 17

How many cars and radios were bought using hire purchase?

Answer 17

6/10 cars

8/10 radios

Question 18

How did the mail order catalogue (eg sears roebuck) work?

Answer 18

Ordered goods on the phone and they were delivered

Paid in instalments over weeks months or years

Question 19

How is hire purchase help the economy?

Answer 19

• More demands for goods meant more jobs and wages
• People could afford to buy products increasing demand
• Increase in demand meant faster production methods were needed so companies had to mass produce leader to wider use of assembly lines
• Businesses made bigger and consistent profits from guaranteed payments which meant they could reinvest and expand businesses

Question 20

How much did female employment increase by during the boom? What did this mean?

Answer 20

24%

More people were earning money which could be spent on goods or invested in savings schemes for radios or cars

Question 21

In 1920, how many owned shares? How many times did this increase by in 1929?

Answer 21

4 million

5 times as many by 1929

Question 22

What deposit did people pay to buy shares?

Answer 22

10%

Question 23

What was ‘buying on the margin’?

Answer 23

Borrowing money from banks to buy shares or paying a small deposit of 10%
Paying the remaining amount back with the profits they made when the shares were sold