The Great Depression Flashcards
who became president in a landslide win over Alfred E. Smith in 1928?
Herbert Hoover
Hoover was the ________ of __________ and Head of the ____ _________?
Secretary of Commerce and Head of the Food Administration.
October 24th?
Black Thursday.
October 29th?
Black Tuesday.
What political party did Hoover belong to?
Republican
A system for buying and selling stock in corporations?
Stock Market
A long period of rising stocks?
Bull Market
Caused by persistent and heavy demands by bank’s depositors, creditors, or customers to withdraw money?
A bank run
How many banks in the U.S. went out of business during this time?
About one in four banks
Act of buying stocks at great risk with the anticipation that prices will rise?
Speculation
Buying stock by paying only a fraction of the stock price and borrowing the rest?
Margin
Three cause of the Great Depression:
- Uneven Distribution of Income
- Loss of export sales
- Mistakes by the Federal Reserve
Was also a factor leading to the onset of the Great Depression?
Overproduction
What’s the Industrial Index?
Measure of the value of leading industrial companies
How much money was lost during the Depression?
$30 billion
What led to bank runs?
News of the bank failures.
The market crash weakened the nation’s banks in two ways:
- By 1929 banks lent billions to bank speculations
- Many banks had invested depositors’ money in the stock market
What raised the average tariff rate to the highest level in American history?
The Hawley-Smoot Tariff
A ________ in exports hurt both American companies and farmers.
decrease
What propelled the stock market?
Access to easy money
Federal Reserve Board did what throughout the 1920’s?
Kept its rates low.
The board’s failure to raise interest rates significantly helped cause the depression in two ways:
- By keeping rates low, the Board encouraged member banks to make risky loans.
- The low interest rates led business leaders to think that the economy was still expanding.
A sustained,long-term downturn in economic activity in one or more economics?
Depression.
Slowdown in economic activity over the course of a normal business cycle?
Recession.
