history 4/19 Flashcards

1
Q

bull market

A

a market in which share prices are rising, encouraging buying

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1
Q

stock market

A

a stock exchange

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2
Q

margin

A

a spare ammount of measure allowed for concengies or special situtaions

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3
Q

margin call

A

specifically to a brockers demand that investor deposite additional money into an account so that the value of investors equity

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4
Q

speculation

A

an economic concept that can be difficult to grasp

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5
Q

bank run

A

when a large number of customers withdraw their deposited money from a bank at the same time

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6
Q

installment

A

an arrangement in which a purchaser pays over extended time

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7
Q

what were the issues with the election of 1928

A

smiths beliefs, catholic churches fianaced the democratic party

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8
Q

who one the election on 1928

A

Herbert hoover

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9
Q

what happened when hoover went into office

A

the stock market reached new highs

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10
Q

what did the bull market do

A

allowed people to invest in stocks

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11
Q

how many American families owned stocks

A

10%

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12
Q

who started buying stocks on the ,margin

A

investors

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13
Q

if the stock market begins to fall

A

a margin call would be demanding a loan

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14
Q

what happens in the 1920s

A

investors brought up bid prices without considering companies earning profits

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15
Q

what did buyers engage in

A

they were hoping for a quick windfall

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16
Q

how long did the bull market last

A

as long as investors were able to put money in it

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17
Q

by the end of 1929 what happened

A

the market had run out of new investors

18
Q

prices slipped and went into

A

epic lows

19
Q

when did the market plunge

A

October 21, monday

20
Q

when and what was black thursday

A

October 29th - prices took the steppest dive

21
Q

how many shares of stocks were sold

A

16 million

22
Q

how much value did the stock market lose

A

10 billion and 15 billion

23
Q

by mid November what happened

A

stock markets dropped more then 1/3

24
Q

how much money was lost through the stock market

A

30 billion

25
Q

what did the stock market do

A

it hurt the nations attempt to recover any economic issue

26
Q

how did the market crash impact the nations bank

A

banks loaned 6 billion to stock speculators, banks lost their money investment

27
Q

what happens when bank closures enetered American society

A

bank runs took place

28
Q

how much of the nations bank closed by 1932

A

10%

29
Q

what were the factors of the great depression

A

the stock market, uneven distribution of income, mistakes by federal reserve, over production

30
Q

what increased during the 1920s

A

efficient machinary

31
Q

what were the high costing items people purchased

A

refrigerators and cars

32
Q

families had

A

no savings and nothing to support them selves

33
Q

how many business collspaed

A

26,000

34
Q

what also forced recssion

A

forgein countries

35
Q

what happened to goods and crops

A

there were not enough money to make them

36
Q

what did hoover do in 1929

A

lowered tarrifs and encouraged over seas trades

37
Q

why did the lower of tariffs failed to help business

A

because forgein investors raised their tariffs too

38
Q

what propelled the stock makret

A

Americans buying more goods on credit

39
Q

why did the board failure rate help

A

because of the great depression

40
Q

what happened when the board rates were kept low

A

members of the bank made risky loans

41
Q

what did business leaders think

A

the economy was still expanding

42
Q

what did companies have to do when the depression hit

A

lay off workers to cut cost

43
Q

what caused a downgrade spiral for the economy

A

the raise of interests rates tightening credits