KQ3 - Wall Street Crash

Question 1

What does buying on the margin mean?

Answer 1

Speculator could pay 10% of the value of the share and borrow the other 90%

Question 2

Out of the population of 120 million how many people were speculators in 1929

Answer 2

20 million

Question 3

What were the causes of the Wall Street crash?

Answer 3

Speculation, unequal distribution of wealth, loss of exports and overproduction

Question 4

What were the immediate consequences of the the Wall Street crash?

Answer 4

Banks closed, people lost money, loss of confidence and fall in production

Question 5

What were the effects of the depression (1929-1941)?

Answer 5

Breadlines, homelessness, unemployment, dust bowls and relying on charity

Question 6

In 1930 how many banks went bankrupt?

Answer 6

1352

Question 7

What was the names of Shanty towns which sprung up on the edge of every town and city?

Answer 7

Hoovervilles

Question 8

What is rugged individualism?

Answer 8

The belief that people should be independent and shouldn’t rely on government

Question 9

What is speculation?

Answer 9

A form of gambling, speculator don’t intend to keep their shares. They borrow money to buy it then sell them for profit and pay back loan. Quick easy way of making money