Unit 3 History Test GRADE 10 Flashcards
What is a margin call?
A demand from a broker, telling people who bought stocks on margin (10% down payment) have to pay up with the rest of the money.
How much money did Canada and the U.S. lose due to the crash?
Canada: 5 million
U.S.: 30 million
Canada’s unemployment reached…
27% (higher in some provinces)
Why did the Crash occur?
6 reasons
- Some areas of Canada were already entering a recession
- Overproduction of goods and over-expansion of goods
- Canada’s dependency on certain primary products
- Canada’s dependence on the USA for most of its trade and exports
- High tariffs cut international trade
- Too much credit buying
Too much credit buying of stocks
What is a recession?
A period of lost jobs, low wages, ruined businesses
Why was it bad that Canada depended so much on the U.S. for trade?
When the U.S. economy began to fall, Canada’s trade economy also fell.
Why was it a problem for Canada to only focus on a few industries?
If the industry would fail, many people would lose their jobs
Why was overproduction and overexpansion of goods a problem?
Canada was making more goods than it could sell. As no one was buying certain products, their prices would drop.
What is the difference between buying a stock and buying it on margin?
Buying a stock on margin requires a 10% down payment
What was the problem with too much credit buying?
As many new things were invented in the 1920s, Canadians used credit money to buy the latest products. SO, many Canadians were in deep credit dept that they couldn’t pay back.
What was the problem with too much credit buying stocks?
Many people borrowed money to purchase stocks. When stock prices fell, many had to sell their stocks or lose their money, and they had no money to repay their loans.
What was the problem with high tariffs?
High tarrifs cut off trade with other countries.
What was the purpose of high tariffs?
Canada hoped that if products from other countries were more expensive, then Canadians would purchase the Canadian goods
What are some examples of workers being taken advantage of during the GD?
Textile mills took advantage of cheap labor
Girls as young as 15 would be hired as they were willing to work for half the amount men would
Everyone was so desperate, they accepted any pay and working conditions
Getting relief depended on what?
The province, town, and person in charge
What is government relief?
The government giving people money
Sometimes people would have to work, but not always
Those who got married, owned a phone, jewelry, radio, or a car, or drank alcohol would lose their relief
What were relief camps?
Camps in which the unemployed and homeless men would go to work in exchange for a low wage, foods, and poor living conditions.
The men carried out multiple forms of manual labour.
Whose idea was it to set up relief camps?
General Andrew McNaughton
Where were relief camps set up?
Remote locations such as Northern Ontario and B.C
Why did Bennet refuse to spend money on relief programs?
Bennet believed that providing that money was a provincial and municipal effort
What was Bennet’s plan of action during the GD?
At first, he thought that the economy would recover quickly
Eventually, he increased tariffs on imports to Canada to protect Canada’s manufacturers and he wanted to force other countries to lower their tariffs on Canadian imports.
This did not work because, in response, other countries only increased their tariffs, which made it a challenge for certain Canadian exporters to sell their goods
Bennet received letters from Canadians, asking for support. Bennet would give them 5 to 20 dollars of his own money
Eventually, he sent out $20 million in aid to the provinces, which did not help
