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Ch. 14 Great depress

Ch. 14 great depression Study guide and answers

Describe issues faced by farmers during the 1920's. Rising crop prices during WWI led to over borrowing and over production after the war.
Explain the psychological effects of the Depression. Feelings of hopelessness, desperation, and despair.
What was the Bonus Army and what happened to the? WWI vets demanding their bonuses. They were attacked and ran out of town by the Army.
List all the effects of the Great Depression. Poor diet, Homelessness, Unemployment, Less education, lower production, and Lowered World Trade.
What were hobos? Men and boys that wondered the country.
What is Direct Relief? Government gives food or payment directly to the people.
Why did the coal mining industry suffer during the 1920's? New forms of energy to compete with.
List reasons consumer purchasing slowed during the late 1920's. Higher prices of goods, Lack of wage increase, over use of credit.
Describe President Hoover's belief about Direct Belief. Believed it was the job of the states.
Who were the Presidential Candidates in 1928 and what were their platforms? Hoover for Prohibition. Smith against Prohibition.
Describe how the Stock Market became over valued during the 1920's. No government regulation, speculation buying, Buying on Margin, Many new investors.
What happened on October 29, 1929 and what is it known as? Day the Stock market crashed losing over $15 billion.
What is a Bear Market? Time of decreasing stock values.
What caused many banks to run out of money when the market crashed? People withdrew their accounts, banks had loaned to speculators and directly invested depositor's money in the market.
What were the effects of the Hawley Smoot Tariff? Raised Tariff to all time highs, further hurt the economy by lowering world trade.
List states affected by the drought of the 1930's. Kansas, Oklahoma, Colorado, Wyoming, Idaho, Texas.
Who were the Okies? Farmers that left dust bowl for work in California.
What is buying stock on margin? Purchasing stock on credit.
Describe the beliefs of most Americans regarding the Depression in the early 1930's. Natural cycle of business and would fix itself.
What program did Hoover initiate that helped the Depression and what were the benefits of the program? Hoover Dam. Provided flood control, electricity, irrigation, and jobs to thousands.
Describe the shift of power in the federal government in the 1930 election. Lost Majority in House, held narrow majority in Senate.
What were Hoovervilles? Villages of homeless living in makeshift shacks in big cities on public land.
Describe Speculation. Gambling that low price stock will skyrocket to provide rich quick opportunities.
What did farmers do in hopes to drive up prices in the early 1930's? To attempt to cause shortages of food and cause price increases.
What did the Federal Home Loan Bank Act do? Lowered people's mortgages rates and allowed farmers to refinance to stay on their land.
How did buying on credit cause a false sense of prosperity in the 1920's? People had overspent and used credit unwisely in order to achieve the American Way standard of living.
Describe President Hoover's legacy. Constructed Hoover Dam, Increased government role in the Economy more than any other president, Bonus Army and Lasting Depression tarnish his legacy.
What mistake did the Federal Reserve make in the 1920's that caused the Depression to be worsened? Kept interest rates low during the economic boom of the 1920's.
List the 4 primary causes of the Depression. Banks investment in the market, Federal Reserve Raising Interest Rates, Credit Dept, Overproduction, Market Crash, and the Hawley Smoot Tariff.
What is a Bull Market? Period of Market Growth.
Created by: Katwill678