Chapter 9 Flashcards
Stock Market
system for buying and selling shares of companies
Bull Market
long period of rising prices
Margin
a type of buying stocks. They only made only a small cash down payment
Margin Call
become sensitive to falling prices
Speculation
bet market, hope it rises, sell quickly
Bank Run
money depositors get their money out
Installment
paid overtime, credit card
Black Tuesday
October 29th, 1929
Hawley-Smoot Tariff
aimed to protect American manufacturers from forign competition but it damaged American sales aboard
Bailiffs
court officers
Okie
migrants from Oklahoma
Hobo
homeless, unemployed Americans
Soap Opera
short dramas that were nicknamed soap operas because the sponsors were often makers of laundry soap
Public Works
government - fianced building projects
Reconstruction Finance Corp.
created to make loans to banks, railroads, and agricultural institutions
National Credit Corp.
opened in Oct. 1931 which created a pool of money to enable troubled banks to continue lending money in their communities
Relief
money that went directly to impoverished families
Foreclose
the residents at a home are evicted and a bank reclaims the property
Bonus Army
veterans that want their bonuses early
Reasons for the Stock Market Crash
declines in consumer demand, overproduction and rampant speculation
Causes of the Great Depression
1) Low Interest Rates > Federal Reserve kept low, companies borrowed money and expanded
2) Overproduction > more goods produced than could be sold
3)Uneven Distribution of Wealth > not everyone could afford consumer goods
4)High Tariffs >restricted foreign demand for American goods
5) Falling Demand
6)Stock Market Speculation
Shantytowns/Hoovervilles
shacks on unused or public lands, forming communities that were set up by newly homeless people
Dust Bowl
big drought in the midwest U.S. and made many people leave
Alfred E. Smith
four-time governor of NY and the first Roman Catholic ever nominated to run for president
