Chapter 14- The Great Depression Begins Flashcards
What is credit?
an arrangement in which consumers agreed to buy now and pay later for purchases
What is buying on margin?
paying a small percentage of a stock’s price as a down payment and borrowing the rest.
What was the farming collapse?
the demand for crops such as wheat and corn increased during world war 1 and after the war ended demand fell and farmers needed to sell crops in order to pay off loans. many went bankrupt
What is speculation?
the buying of stocks and bonds on the chance of a quick profit.
What is the Dow Jones Industrial Average? How is the Dow measured?
The most widely used barometer of the stock markets health. The Dow is measured based on the stock prices of 30 representative large firms trading on the New York Stock Exchange.
What was Black Tuesday? What date did it occur on?
When the bottom fell out of the market and nations confidence. October 29th 1926.
What was the Great Depression?
the period from 1929-1940 in which the economy plummeted and unemployment skyrocketed. The stock market crash didnt cause this, but it hastened the collapse of the economy and made the depression more severe.
What were some causes of the Great Depression?
- tariffs and war debt policies that cut down the foreign market for American goods
- a crisis in the farm sector
- the availability of easy credit
- the unequal distribution of income
What was the Hawley-Smoot Tariff Act?
it established the highest protective tariff in the United States history. It was designed to protect American farmers and manufacturers from foreign competition.
What was the dust bowl? and when did it occur?
A drought that began in the 1930’s that eventually picked up dust and carried millions if tons of it from the plains to the East Coast Cities. The regions that were hit the hardest were Kansas, Oklahoma, Texas, New Mexico and Colorado.
Who was Herbet Hoover?
US President who coordinated U.S. relief efforts in Europe, earning a reputation for efficiency and humanitarian ideals.
What was the bonus army?
between 10,000 and 20,000 World War I veterans and their families who arrived in Washington DC, from various parts of the country. They called themselves the Bonus Expeditionary Force or, the Bonus Army.
What were Hoovervilles?
little towns consisting of shacks
