Topic 13 Lesson 1

former Secretary of Commerce and Republican candidate for President in 1928

• Herbert Hoover

• Franklin D. Roosevelt

• Calvin Coolidge

• Woodrow Wilson

Answer explanation

Herbert Hoover, in full Herbert Clark Hoover, (born August 10, 1874, West Branch, Iowa, U.S.—died October 20, 1964, New York, New York), 31st president of the United States (1929–33). Hoover’s reputation as a humanitarian—earned during and after World War I as he rescued millions of Europeans from starvation—faded from public consciousness when his administration proved unable to alleviate widespread joblessness, homelessness, and hunger in his own country during the early years of the Great Depression.

speculation

• when investors gamble that stock prices will rise

• periodic expansion and contraction of the economy

• buying on credit and paying in installments

• uneven distribution of wealth

Answer explanation

The biggest cause of the stock market crash was speculation. As prices began to rise for stocks, more investors wanted to buy to make sure they did not “miss out” on great investments. ... This is called a “speculative bubble”, and as more people were trading with more borrowed money, it began to become very unstable.

October 24, 1929, the day the stock market crashed

• Black Tuesday

• Black Friday

• Bloody Sunday

• Business Cycle

Answer explanation

October 29, 1929. On this date, share prices on the New York Stock Exchange completely collapsed, becoming a pivotal factor in the emergence of the Great Depression.

periodic expansion and contraction of the economy

• business cycle

• speculation

• buying on margin

• stock market cycle

Answer explanation

Business cycles are identified as having four distinct phases: expansion, peak, contraction, and trough.

The collapse of the United States and world economies beginning in 1929

• Great Depression

• Great Recession

• Black Tuesday

• Bank Run

Answer explanation

Great Depression, worldwide economic downturn that began in 1929 and lasted until about 1939. It was the longest and most severe depression ever experienced by the industrialized Western world, sparking fundamental changes in economic institutions, macroeconomic policy, and economic theory.

high protective tariff passed in June 1930 that contributed to a worldwide depression

• Hawley-Smoot Tariff

• Fordney–McCumber Tariff

• Reciprocal Tariff Act

• McKinley Tariff

Answer explanation

Smoot-Hawley Tariff Act, formally United States Tariff Act of 1930, also called Hawley-Smoot Tariff Act, U.S. legislation (June 17, 1930) that raised import duties to protect American businesses and farmers, adding considerable strain to the international economic climate of the Great Depression.

Which of the following statements best describes what happened on Black Tuesday?

• Stock prices fell and the stock market crashed.
• Bank runs forced many banks to close their doors.
• Federal troops attacked the Bonus Army marchers.
• The Supreme Court ruled that the NRA was unconstitutional.

When the economy is expanding, leading to a rise in stock prices and increased investing, the market is described as a...

• DOW-JONES Cycle

• Bear Market

• Boom-Bust Cycle

• Bull Market

This is the process of taking money borrowed from the bank or a broker, and putting it into the stock market

• Buying on Margin 
• Speculation 
• Buying on Credit 
• Overconsumption 

A way of borrowing money from a bank or finance company so that you can have what you want and pay for it later

• Speculation 
• Buying on Credit 
• Buying on Margin 
• Overproduction