USA: end of prosperity

Question 1

what is over production?

Answer 1

fewer products were being sold
this was caused by companies over producing products that american’s couldn’t afford to buy
they couldn’t sell their products in other countries to due high taxes
sales then fell and jobs were lost

Question 2

why did consumer demand fall?

Answer 2

american’s couldn’t afford to buy and some manufacturers didn’t see the limit to what could be bought so they overproduced
USA couldn’t sell abroad due to high tariffs on foreign goods
banks had lent money to several European countries that found it hard to repay the loans back

Question 3

what happened to property values?

Answer 3

people borrowed money heavily in order to keep and sell when value had risen
land value fell leaving homes and people bought worth a lot less than they had paid for it

Question 4

what was overspeculation?

Answer 4

share prices did not rise as companies were not selling as many goods so fewer people bought shares
prices then rose again and greed took over

Question 5

what did the availability of easy credit do to the economy?

Answer 5

made t easier to buy goods
worked well as long as prices were rising
prices fell and most of the money used to buy shares was borrowed

Question 6

how much of the money used to buy shares was borrowed?

Answer 6

75%

Question 7

what was panic selling?

Answer 7

experts started to sell their shares and then other small investors panicked and investors lost a lot of money

Question 8

what happened on Saturday 19th October 1929?

Answer 8

3.5 million shares traded prices fell

Question 9

what happened on Monday 21st October 1929?

Answer 9

6 million shares traded. prices continued to fall

Question 10

what happened on Black Thursday 24th October 1929?

Answer 10

stock market fell 11% in value and 13 million shares were traded, more than 3 times as usual

Question 11

what happened on Friday 25th October 1929?

Answer 11

bankers pumped money into the stock market and there was a slight rally in prices

Question 12

what happened on Monday 28th October 1929?

Answer 12

panic returns and share prices fall dramatically

Question 13

what happened on Black Tuesday 29th October 1929?

Answer 13

worst day ever. 16 million shares traded

Question 14

what was the fall in share prices known as?

Answer 14

the wall street crash

Question 15

what were the long term causes of the wall street crash?

Answer 15

overproduction
falling consumer demand
land and property values dropped

Question 16

what were the short term causes of the wall street crash?

Answer 16

over speculation

easy credit

Question 17

what was the trigger cause of the wall street crash?

Answer 17

panic selling

Question 18

what were the immediate effects of the wall street crash?

Answer 18

shareholders lost everything
suicides reported
banks collapsed