Chapter 13 Section 2-The Great Depression Flashcards
When someone borrows money to buy stocks, it is known as…
Buying on margin
Why did the stock value raise 400% in the 1920s?
Industry was booming
The arrangement in which you borrow money from a bank or oter lender and agree to pay it over time is…
Credit
Why did many go bankrupt in the 1920s?
They were reaching the end of their credit, and were greatly in debt because of it.
What day is known as Black Tuesday? Why?
October 29, 1929; this was the worst sell-out day of the stocks
What is the economic downturn after the stock market crash known as?
The Great Depression
By 1933, one out of every __ workers were unemployed.
Four
Who believed the government should have a limited role in business affairs?
Herbert Hoover
What was the main cause of this econonic crisis?
Slowdown in industry
Why did banks suffer?
Many people took their money out of the banks because they were not insured and people would lose all their money if it went out of business.
Who was elected President of the United States in 1932?
Franklin D. Roosevelt
What was the program that established many government programs that are stikl there today, including Social Security?
The New Deal
Who was the British economist who believed that governments could limit and even prevent economic downturns by spending money?
John Maybard Keyes
How did the Great Depression spread around the world?
America was one of the world’s leading importers and lenders of money, and many countries were still suffering from World War I.
What was the Smoot-Hawley Tarrif Act?
It was an act that placed heavy taxes on imported goods in an attempt to encourage Americans to buy goods and products made in the United States.
