Quiz 3 Ch. 30

By 1933, __% of all banks will close

20

Unemployment rate went down _____% and the stock market dropped __0 billion in one week during which event?

25 3 stock market crash

Between 1929 and 1933, the unemployment rate rose from ___ percent of the American workforce to _____ percent.

3 25

Between 1931-1932, __,__00 banks will close

38

What was Hoover's slogan?

4 more years of prosperity

The wealthiest __% percent of America owned a ______ of all ________ earned

5 third money

By early 1931, the economy was a shambles. Stock prices had ______. Bank closings were _________. Manufacturers could not ________ their products. And farmers were entering their __________ decade of financial distress

Plunged typical sell second

overproduction: a situation in which more goods are being __________ than people can afford to _______

Produced buy

People simply could not afford to buy all that was being _____________. The resulting glut of _________ in the market, combined with the _______ market crash and the _______ crisis, caused the economy to _________.

Produced goods stock bank collapse

By the late 1920s, demand for consumer goods could not keep up with _________

Production

What was Hoover's goal/platform?

Prosperity

Hawley-Smoot Tariff Act: a law passed by Congress in 1930 to ______ the tariffs on _________ goods in order to _______ U.S. businesses and farmers

Raise imported protect

The Stock Market Crash lead to (?)

The great depression

American _____ were not keeping were not up to par with the cost of living. Wages were either the______ or _______. As a result, workers and farmers were not _________ stuff (underconsumption)

wages same decreasing buying

Stockbroker loans had _______ $137 million.

Risen

_______ stock prices created a high-flying ______ market without a solid ___________. When the market turned down, this _________ money house of cards collapsed

Rising bull foundation borrowed

Herbert Hoover: republican, ________ voters, _________ prohibition, was catholic but didn't follow the Pope (_______)

Rural supported protestant

By 1927 Americans were cutting back on ________. Instead they put their money towards the _______ market, used ________ to pay, and personal debt increased from ___.1 billion dollars to ___.9 billion dollars

Saving stick credit 3 9

(1920s) Most business profits went to a relatively _________ number of people. A wide gap separated the rich from the _________ class. On one side of the gap, the wealthiest ____ percent of American families received about a _______ of all the money earned in the country. That was more than the ________ percent of all families at the bottom on the income scale earned. Moreover, an estimated 40 percent of all Americans lived in _______.

Small working 5 third 60 poverty

Easy borrowing (brokers for stocks) encouraged _________, or the making of risky investments in the hope of earning large profit

Speculation

During the 1920s America was experiencing a _________ market. This had many people buying on ________. Then, Anerica experienced a ________ market. This left many people unable to repay their loans to ________, stockbrokers cannot repay the loans to _________, banks cannot give money to their __________. Result: BANK RUNS

Bull margin bear stockbrokers banks depositors

Groucho Marx=a wealthy, famous ________

Actor

How did people feel during bank runs? A) happy, calm, relaxed B) panicked, desoerate, and anxious

B

Federal Reserve System: the central ________ authority of the United States, which manages the nation's ________ supply

Banking money

Stockbrokers were borrowing money from _________. This caused problems because ________ values decreased and loans would not be _______ back

Banks stock payed

By 1929, the stock market was becoming a __________ market

Bear

______: a person who buys and sells stocks for clients

Broker

The purpose of the stock market is to provide ____________ with the _________ they need to grow.

Businesses capital

In the election of 1928, whi decided not to seek a third term?

Calvin Coolidge

prices in the stock market began __________, By then it was clear to many investors that a _________ market, in which prices decrease steadily, had begun. Fearful of losing everything, ____________ rushed to sell their stocks, pushing prices ______ still further. By the end of the year, investors had lost more than $30 _______

Decreasing bear investors down billion

________ ________: the rate of interest at which banks that belong to the Federal Reserve System can borrow money from Federal Reserve banks

Discount rate

, the Fed allowed the money supply to ________ by a third between 1929 and 1933. This decline helped turn a nasty recession into an _________ calamity.

Drop economic

Consumer spending ________ 400% During the Stock Market Crash

Dropped

As prices _________, creditors who had loaned money for buying stock on margin demanded that those loans be ________. Unfortunately, because of falling prices, most investors (could/ could not) make enough selling their stocks to repay their loans. Many had to sell their homes, cars, and furniture to pay their ________. Even businesses were affected. Many companies that had invested their __________ in the stock market lost everything and had to _______ their doors.

Dropped repaid could not debts profits close

The stock market boom began innocently enough. Businesses thrived in the 1920s. Manufacturers were making products that consumers were __________ to buy. As Americans saw business profits __________, many thought they could make a lot of money by buying __________ in successful companies. The promise of financial gain drew new __________ to the stock market. The result was a _______ market, or a steady rise in stock prices over a long period of time.

Eager grow shares investors bull

By 1929, the buying spree was coming to an __________. Many Americans found themselves deep in ________ and were unwilling or unable to borrow more. Even the wealthy, who could afford to buy whatever they wanted, were buying less because they had _____ the goods they needed.

End debt all

True or false: By 1939 the banking system was organized and well off

False

buying on margin: buying stock by paying a __________ of a stock's price and __________ the rest of the money from a broker, allowing one to make greater profits if the stock does well

Percentage borrowing

People simply could not afford to buy all that was being produced in the late 1920s. The resulting glut of ______ in the market, combined with the stock market crash and the bank crisis, caused the economy to ________.

Goods collapse

In the election of 1928, the winner would have to deal with what event?

Great Depression

The stock market crash: a major reason for the ________ _____, people were buying on _______, residential home construction went ________, stock broker and bank loans __________.

Great Depression margin down increased

In a speculative market, a company's stock price does not go up because the company is ________. Prices rise because ________ want to buy a stock today and sell it for a quick _______ tomorrow.

Growing speculators profit

Why was Hoover considered a "Horatio Alger Story"

He was a small town orphan that became president

During the Stock Market Crash, residential _________ construction fell $11 ________. This lead to skilled worker getting ________.

Home billion fired

__________ won the Election of 1928

Hoover

___________: a nickname for poor tent villages to scorn president Hoover

Hooverville

By the late 1920s, the problem of underconsumption had spread to __________. Responding to the glut of products on the market, many manufacturers cut back ___________. In the auto and steel industries, for example, production declined by as much as ______ percent by the end of 1930.

Industry production 38

_______: the charge made by a bank for the use of money deposited in an account

Interest

What did the "New Deal" do?

It brought down unemployment rate and provided incomes

What did president Hoover say and predict about the stock market crash?

It would go away in 60 days

bank run: a financial crisis in which a _______ number of customers simultaneously attempt to ______ their money from a bank out of fear that the bank will _______

LArge withdraw close

Bank runs started because banks gave all their money for ________

Loans

Following the crash, Federal Reserve officials kept rates _______ for a time. Then, in 1931, it began ___________ the discount rate. The immediate effect of this action was to ___________ the amount of money moving through the economy. The timing of this action could not have been _________. Many people had already stopped spending, and producers had slowed production. Higher interest rates further ____________ the economy by depriving businesses of the capital they needed to surviv

Low raising decrease worse damaged

New __________ and new farming __________ expanded farm production even while demand for farm products was _________ in the 1920s.

Machines techniques dropping

The ability to (?) a wide range of consumer goods started the stock boom.

Mass produce

The ability to _______-_______ a wide range of consumer goods started the stock boom. However, for mass production to succeed, people had to ______ the goods being churned out of factories. By the late 1920s, __________ for consumer goods could not keep up with ________.

Mass produce buy demand production

What was the 'notion' of the 1920s?

New era with new rules

When was black tuesday?

October 29, 1929

As the 1920s came to an end, __________ overwhelmed the American economy.

Overproduction

Factories and farmers were guilty of ________. Factories and farms were too _______. Also, europe wasn't ________ our croos, which hurt farmers

Overproduction efficient buying

(?): in October 1929, the period of plunging stock market prices that helped initiate the Great Depression

Stock market crash

Black Tuesday: October 29, 1929; the worst day of plunging _______ market _______ during the stock market crash that helped initiate the (?)

Stock prices great depression

Who swore in Hoover as president?

Taft

True or false: By 1939 the banking system was unorganized and paralyzed

True

True or false: In the late 1920s, a lot of people were swept up in the wave of speculative enthusiasm for the stock market

True

__________ caused farmers to commit foreclosure

Underconsumption

_____________ made many factory workers get laid off

Underconsumption

Whether businesses decreased production or went bankrupt, the result was the same for workers: ___________.

Unemployment

For a time, Americans made up for the __________ distribution of wealth by using _________ to buy the radios, cars, and household appliances that flooded the market. The more modern approach was to ___________ money to buy the latest products right away. Between 1921 and 1929, personal debt more than ________

Unequal credit borrow doubled

Alfred E. Smith: democrat, _______ voters, wanted to ________ prohibition, catholic

Urban repeal