Stock Market and Great Depression

A major reason for the emergence of the "consumer culture" of the 1920s was:

• the federal government encouraged labor to organize.
• minimum wage laws expanded buying power.
• installment payments encouraged buying.

Which of the following describes when companies make too many durable goods?

• Over-Consumption
• Under-Production
• Under-Consumption
• Over-Production

This is the phrase for buying stocks using borrowed money

• Buying on Margin
• Buying on Stock
• Buying on Margarine
• Buying on Butter

True or False:  The Great Depression happened all over the world--not just in the US

• True
• False
• Nah fam it was just here
• Wait does Canada count as part of the US?

Black Tuesday: October 29, 1929

• Banks Failed
• Car Industry shut down
• Banks Runs begin
• Stock Market Crash

Put 10% down to buy stock, pay rest later.

• Credit
• Debt
• Speculation
• Buy on Margin

Making too much of a product, price goes down.

• Credit
• Overproduction
• Debt
• Reccession

One of the causes of the Great Depression occurred when people would purchase products and stocks on an installment plan, but what caused this installment (payment) method to fail?

• People would buy less than they could afford
• People could not afford the monthly payments, so they would not be able to pay back their loans
• People paid too much up front for their products
• Demand for consumer goods was low, so people would not even want to buy these luxury goods

After the Stock Market Crash, many people lost their life savings because ___________.

• banks closed for business
• banks gave away their money
• they couldn't remember where they put their money
• someone stole their money from the banks

In the 1920s, the belief in a never-ending prosperity helped to promote:

• strict enforcement of governmental regulations.
• government efforts to increase the income of farmers.
• heavy increases in stock speculation.