The Wall Street Crash and The Great depression Flashcards Preview

A Level - American History > The Wall Street Crash and The Great depression > Flashcards

Flashcards in The Wall Street Crash and The Great depression Deck (23)
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1
Q

When was the Wall St. Crash?

A

1929

2
Q

When was the beginning of the great depression?

A

1930

3
Q

What happened to African Americans that had jobs during the depression?

A

Their unemployment rate was six times greater than it was for white Americans

4
Q

How did working class woman suffer from the depression?

A

They lost their jobs before men and women in domestic services were dismissed as their employers could not pay them.

5
Q

Why was the USA unable to cope with the immediate effects of unemployment prior to the depression?

A

Before the depression people thought if you were able bodied and lost your job it was your fault so there was no system they could fall back on.

6
Q

By 1929 how many people owned shares?

A

1.5 million people

7
Q

What is a bull market?

A

When the value of shares rise and they are sold for more than they were bought for.

8
Q

What is a bear market?

A

When the prices of shares are falling

9
Q

What are speculators?

A

People who gamble with shares and take a chance.

10
Q

How is a bear market caused?

A

Speculators gambling on future prices

11
Q

How do speculators turn a bear market into a crash?

A

They try to get rid of their shares before they fall further

12
Q

What is meant by buying on the margin?

A

Buying with credit

13
Q

How did Hoover respond to the Great depression?

A

Gave aid to farmers

Delayed war debts owed from other countries

14
Q

Why was there a crash in 1929?

A
  • Speculators had huge loans and worthless shares
  • On Thursday 24th Oct, 13 million shares were sold in panic
  • The value of shares rose 5 times between 1924 and 1929
  • Share prices rose beyond what they were worth
  • Many became speculators
  • There was corruption and secret trading between the bankers and brokers
15
Q

Who was the economist that predicted a crash?

A

Roger Babson

16
Q

Why was there a depression in the 1930’s?

A
  • World trade slumped
  • Some thought there was a drop in spending and people wanted to begin to save
  • Maldistribution of wealth
  • 40% of the population were already living in poverty
  • Cycles of depression
17
Q

Some thought the Great depression was the fault of the US federal reserves, why?

A

In 1931 they raised interest rates which led to a reduction in money

18
Q

What was Herbert Hoover’s reason for the depression?

A

He blamed it on the financial collapse of Europe in 1931

19
Q

Why couldn’t just the Wall st. Crash have caused the Great Depression?

A

There were only 1.3 million shareholders and only 600,000 speculators so how can their bad luck could not have caused a depression for a country of 123 million.

20
Q

How did tariffs contribute to the Great depression?

A

World trade slumped, due to too many American tariffs which damaged industry and agriculture

21
Q

How many countries avoided the USA’s tariffs?

A

60

22
Q

What was the Great Depression? (6 Marks)

A
  • Collapse in demand
  • Industrial decline
  • Mass bankruptcy
  • Collapse of banks
  • Farm closures
23
Q

What acts did Hoover set up to respond to the GD of the 1930’s?

A
  • Reconstruction Finance Cooperation
  • 1932 Emergency Relief and Construction act
  • 1932 Federal Home Loans act