Chapter 14 Section 1

Question 0

What were signs of economic troubles?

Answer 0

Industries in trouble
farmers were suffering
consumers had less money to spend
People were living on credit 
Uneven distribution of income

Question 1

McNary-Haugen Bill

Answer 1

Called for federal price supports for key products such as wheat, corn, cotton, and tobacco

Government would buy surplus crops at guaranteed prices and sell them on the world market

Question 2

Alfred E. Smith

Answer 2

Democratic candidate in 1928 election and lost to Herbert Hoover

Question 3

Dow Jones Industrial Average

Answer 3

Most widely used barometer of the stock markets health

Dow-measure based on stock prices of 30 representatives large firms

Question 4

“Bull Market”

Answer 4

A period of rising stock prices

Question 5

Speculation

Answer 5

Buying stocks and bonds on the chance of a quick profit while ignoring the risks

Question 6

Buying on margin

Answer 6

Paying a small percentage of a stocks price as a down payment and borrowing the rest

Question 7

Black Tuesday

Answer 7

Bottom fell out of the market and the nation’s confidence

Shareholders tried to sell before prices dropped even lower

Question 8

Hawley-Smoot Tariff Act

Answer 8

Established highest protective tariff in US history

Designed to protect American farmers and manufacturers from foreign competition.

Question 9

Causes of the Great Depression

Answer 9

Tariffs and war debt policies that cut down the foreign market for American goods
Crisis in the farm sector
Availability of easy credit
Unequal distribution of income