Chapter 18 Quiz Flashcards
what led to the bull Market of 1928
economic prosperity and optimism
what was a effect of the 1928 bull market
inexperienced investors were buying stocks
buying stocks on “margin”
pay a small down payment, broker would lend money for the rest
why were investors anxious to sell stock
a broker could make a margin call and demand their loan back
one way speculation led to the stock market crash of 1929
people bought on margin, artificially inflating stock prices
result of 1929 margin calls
-panic -selling stock -market crash
why did banks fail from the market crash
used loans for stocks -banks invested in the market
When too many people panic and attempt to withdraw their money from a bank
bank run
root cause of the depression
uneven distribution of income
Why did the U.S. experience a decline in exports just as the market collapsed
A tariff discouraged foreign trade
How did the economic collapse of 1929 and 1930 affect the average American worker
By early 1933, more than one-fourth of the workforce was unemployed
what was a breadline
a long line of poor people waiting for free food
What were shantytowns
communities of homeless people who lived on public land
what were young men and boys who rode railways from one place to another in search of a better life called
hoboes
What caused the Dust Bowl
A massive drought that turned uncultivated land into dust that blew across hundreds of miles
What did many Dust Bowl farmers do when they lost their land to the banks
They headed west to California
What were “Okies”
farmers from Oklahoma who had lost their land and headed west
Why did the entertainment industry grow during the Great Depression
People wanted an escape from troubles
What great literary work depicted the life of a family of “Okies”
The Grapes of Wrath
What new entertainment medium gained great popularity during the Great Depression
comic books
How did President Hoover initially respond to the stock market crash
by being optimistic and downplaying the severity of the situation
What principle did President Hoover originally cling to as the solution to the nation’s economic troubles
rugged individualism
What was the purpose of the series of conferences President Hoover conducted in 1930 in response to the economy
to convince business leaders to retain workers and maintain wages
What are “public works”
government-funded building projects
What was the purpose of the National Credit Corporation
to increase the amount of currency in circulation
What was a flaw of the Reconstruction Finance Corporation, created by President Hoover in 1932
It was too cautious and did not meet the demands of the failing economy
How did the government respond to the call for direct relief to families
It passed the Emergency Relief and Construction Act
What were “hunger marches”
protests organized by the Communist Party to demand higher taxes for the wealthy in order to feed the poor
What was the Bonus Army
a group of 15,000 veterans who squatted in Washington, D.C., demanding early bonuses
What happened when Hoover ordered the removal of the Bonus Army
Veterans were eventually chased from the Capitol by 700 soldiers
