Who was president at the start of the Great Depression?
Herber Hoover
Donald J. Trump
Franklin D. Roosevelt
Calvin Coolidge
What is the definition of an economic depression?
a short period of economic growth then a drop
when the rich lose money but the poor don't
long, drastic decline in economic activity (lower GDP, etc.)
two quarters of lower GDP in a row
In the 1920's what made it easy to have lots of things (cars, homes, refrigerators, etc.)?
Everyone had high-paying jobs
Philanthropists gave goods to the people for no cost
Buying on credit or installment plans
Lots of gold saved from the gold rush
How did most people know about the various new and convenient goods to buy in the 1920's?
Television commercials.
Newspaper, magazine, and radio ads.
YouTube ads.
The pony express.
What is stock?
pieces of businesses or corporations
a 100% sure way to always make money
a paper certificate that lets you spin a wheel in Life
the money a stockholder gets from businesses or corporations
Name 2 risky things people were doing in the stock market before the depression.
selling high and buying low
buying stock
speculation (risky but quick) and buying on margin (credit)
selling low and buying high
T or F Many stocks in the stockmarket were overpriced just before the Great Depression
True
What is a surplus inventory (p 282) and how did it affect stock prices?
Unsold goods; caused the prices of stocks to go down
Goods already sold; caused prices of stocks to go up
A large warehouse; caused the prices of stocks to go up
Name & explain the 2 "black" days in 1929.
Black Thurs Oct 24 stock prices drop; Tues Oct 29 people sell even at low prices & CRASH!
Why were people who didn't even own stock affected by the stock market crash?
The government secretly ran out of the stock market
Banks lost money &/or failed& supply of credit was cut off
They were sad for the speculators so they didn't buy stuff
What was the unemployment rate during the worst years of the Great Depression?
1 in 10 people
1 in 4 people
100%
17%
What did the federal reserve do to the money supply in 1930? Did it help? p 283
Increased it, YES the banks got back on their feet right
Didn't get involved with money supply. YES, it helped.
Shrunk it, NO it caused more bank failures
What people/ organizations did Hoover think should help the unemployed?
foreign countries such as Canada and Mexico
families, churches, charities, and neighbors
the government with various programs
Name at least 2 things that made things harder for farmers during the Great Depression.
Less demand for food (lower prices), inability to pay back debt/getting evicted, Dust bowl (drought),
Name at least 2 things people did for entertainment during the Depression.
radio, games (like Monopoly), motion pictures, sports, concerts at parks, front porch hang-out
How were Hoover and Franklin D. Roosevelt different in ideas about government involvement?
Hoover didn't want to expand govt; FDR wanted programs
Hoover wanted to expand govt; FDR didn't
They both wanted a lot of federal gov't involvement
Neither of them wanted much federal gov't involvement
