The Wall Street Crash and The Great depression

Question 1

When was the Wall St. Crash?

Answer 1

1929

Question 2

When was the beginning of the great depression?

Answer 2

1930

Question 3

What happened to African Americans that had jobs during the depression?

Answer 3

Their unemployment rate was six times greater than it was for white Americans

Question 4

How did working class woman suffer from the depression?

Answer 4

They lost their jobs before men and women in domestic services were dismissed as their employers could not pay them.

Question 5

Why was the USA unable to cope with the immediate effects of unemployment prior to the depression?

Answer 5

Before the depression people thought if you were able bodied and lost your job it was your fault so there was no system they could fall back on.

Question 6

By 1929 how many people owned shares?

Answer 6

1.5 million people

Question 7

What is a bull market?

Answer 7

When the value of shares rise and they are sold for more than they were bought for.

Question 8

What is a bear market?

Answer 8

When the prices of shares are falling

Question 9

What are speculators?

Answer 9

People who gamble with shares and take a chance.

Question 10

How is a bear market caused?

Answer 10

Speculators gambling on future prices

Question 11

How do speculators turn a bear market into a crash?

Answer 11

They try to get rid of their shares before they fall further

Question 12

What is meant by buying on the margin?

Answer 12

Buying with credit

Question 13

How did Hoover respond to the Great depression?

Answer 13

Gave aid to farmers

Delayed war debts owed from other countries

Question 14

Why was there a crash in 1929?

Answer 14

• Speculators had huge loans and worthless shares
• On Thursday 24th Oct, 13 million shares were sold in panic
• The value of shares rose 5 times between 1924 and 1929
• Share prices rose beyond what they were worth
• Many became speculators
• There was corruption and secret trading between the bankers and brokers

Question 15

Who was the economist that predicted a crash?

Answer 15

Roger Babson

Question 16

Why was there a depression in the 1930’s?

Answer 16

• World trade slumped
• Some thought there was a drop in spending and people wanted to begin to save
• Maldistribution of wealth
• 40% of the population were already living in poverty
• Cycles of depression

Question 17

Some thought the Great depression was the fault of the US federal reserves, why?

Answer 17

In 1931 they raised interest rates which led to a reduction in money

Question 18

What was Herbert Hoover’s reason for the depression?

Answer 18

He blamed it on the financial collapse of Europe in 1931

Question 19

Why couldn’t just the Wall st. Crash have caused the Great Depression?

Answer 19

There were only 1.3 million shareholders and only 600,000 speculators so how can their bad luck could not have caused a depression for a country of 123 million.

Question 20

How did tariffs contribute to the Great depression?

Answer 20

World trade slumped, due to too many American tariffs which damaged industry and agriculture

Question 21

How many countries avoided the USA’s tariffs?

Answer 21

60

Question 22

What was the Great Depression? (6 Marks)

Answer 22

• Collapse in demand
• Industrial decline
• Mass bankruptcy
• Collapse of banks
• Farm closures

Question 23

What acts did Hoover set up to respond to the GD of the 1930’s?

Answer 23

• Reconstruction Finance Cooperation
• 1932 Emergency Relief and Construction act
• 1932 Federal Home Loans act