End of prosperity, topic, five

Question 1

When did the economic boom start?

Answer 1

1920s

Question 2

What happens in 1925 to 1929

Answer 2

The stock market more than triples, $27 billion-$87 billion

Question 3

When did house prices fall

Answer 3

1926

Question 4

When did 20 million people invest in shares

Answer 4

1929

Question 5

When was Black Thursday

Answer 5

24th of October 1929 12.8 million shares sold

Question 6

What happened on the 29th of October 1929 also known as Black Tuesday

Answer 6

16 million shares sold, which was the collapse of the stock market 

Question 7

When we’re 2.5 million people out of work

Answer 7

At the end of 1929

Question 8

What’s the definition of consumer goods

Answer 8

Goods that are used as the end product, example, Hoover/radios

Question 9

What was the Fordney McCumber tariff act?

Answer 9

Taxes, imposed on goods from abroad 

Question 10

What was laissez faire

Answer 10

Government policy of non-interference in the economy. This was normally used by Republican presidents.

Question 11

Short term reasons of the end of prosperity

Answer 11

Stock market, the loss of confidence on the sudden of all prices and overspeculation

Question 12

What are long-term reasons for the end of prosperity?

Answer 12

Commerce, overproduction in agriculture, falling demand for goods, property prices, overproduction, and industry, too many small banks

Question 13

What did bankers do to save the day on Friday 25th of October 1929

Answer 13

Bunkers at midday to support the stock market. It seems to have worked as prices have steadied

Question 14

How overproduction happened?

Answer 14

Few products such as cars are being sold this was partly caused by overproduction factories had produced more than Americans could afford to buy.
They could not sell many goods abroad because foreign countries put tax on American goods
sales then fell and bosses cut prices and wages
when this didn’t work, they cut their losses by sacking workers.
This meant fewer workers with less money to buy goods so factories cut costs, and more people lost their jobs.

Question 15

How big was 50% of American families income

Answer 15

$2000, which is a minimum to survive

Question 16

The value of stock in America between the years of 1925 and 1929 summer

Answer 16

1925 $27 billion
1929 October $87billion
1929 summer 20 million shareholders

Question 17

What is hire purchase?

Answer 17

Firms allowed customers to pay for items in installments

Question 18

What’s on the margin?

Answer 18

People borrowed money to buy shares
This is an example of easy credit

Question 19

What is federal reserve board?

Answer 19

It’s an organisation which controls the federal reserve, which is a national system of reserve cash available to banks. This encouraged people to borrow money.

Question 20

In the 1920s, what state had a sharp rise in land values

Answer 20

Florida

Question 21

When did property prices fall sharply?

Answer 21

1926

Question 22

What did the USA try to do to overcome overproduction?

Answer 22

They tried to sell surplus products to other countries, but other countries couldn’t afford to buy the surplus goods because of the World War I America loaned Europe money, so they now had to pay them back

Question 23

Describe over speculation on the stock market

Answer 23

More and more American bought shares in 1920s in stock exchange, 1928 shares did not rise as much as previous years so companies were not selling so many goods so their profits fell. Few people were willing to buy shares and there was a dropping confidence in the market greet, took over and speculation re-occurred