U.S. History Chapter 9
List 2 signs of weaknesses in the economy during the 1920s
1. Older industries, such as coal, mining, railroads, and cloth manufacture, were in decline. 2. Agriculture was experiencing a prolonged downturn.
What were the 5 dustbowl states?
1. Texas 2. Oklahoma 3.Kansas 4.Colorado 5.New Mexico
In what year did the Great Depression begin?
1929
In what year did the Great Depression end?
1940
How high did the unemployment rate reach between 1929 and 1933?
25%
Describe the banking crisis?
After the crash, frightened depositors rushed to banks to withdraw their savings. More thank 5,000 banks had failed by 1933
Explain how Hoover responded to the Great Depression?
He set up public work projects and encouraged charities to set up soup kitchens. Set up the RFC
On what date did the stock market crash? What is it known as?
October 29, 1929, Black Tuesday
What is the normal business cycle?
Prosperity, Recession, Depression, Recovery
What is RFC?
Reconstruction Finance Corporation
Who predicted the stock market crash?
Roger Babson
What is the bonus army and what actions did they take in Washington D.C.?
an army of 20,000 veterans, they marched to Washington to get the $1,000 payment
what does it mean to default on a loan?
fail to pay a loan
Define bankruptcy and describe its role in the downward spiral?
is financial failure caused by a companies inability to pay it debts. it caused more layoffs which caused more people to have less money.
Define overproduction and explain in your own words, how overproduction contributed to the Great Depression?
overproduction is a situation in which the supply of manufactured goods exceeds the demands, companies don't make money when the product is sitting on the shelf.
what does investor mean?
people who buy stocks in companies
what does Broker mean?
people who lend other people money to buy on margin
What were Hoovervilles and how did they get their names?
small makeshift towns outside of cities. Named after the president because he failed to fix the crisis.
