Unit 6 : Great Depression Review (NEW)

Drag and drop the FIVE causes of the Great Depression (GD)

Groups:

(a) Causes of the GD (5)

,

(b) NOT an ANSWER (3)

• Higher prices for consumers

• End of prohibition

• Overproduction in farming

• Tariffs & war debt

• Speculation in the stock market

• Fed. Reserve Board Constricts $$$ supply

• WWI veterans demanding payments

• Credit available for spending

How did tariffs & war debts led to the Great Depression?

• US cancelled ALL tariffs

• US could not pay their war debt back to Germany

• Many US businesses ended up losing money

What is the crisis in farming in the late 1920s?

• Farmers did NOT invest in the stock market

• The US government made a new tax for farmers only

• Farmers are required to hire 100 more workers

• Farmers are producing too many crops (Overproduction)

What is credit?

• Buy now, pay later

• Borrowing money from your neighbor

• Using cash only to buy products

What is the issue that many Americans have with using credit?

• People are being denied credit

• Only those who are business owners can apply for credit, leaving the average American broke

• People are NOT paying back their credit loans so banks lose money

BEFORE the Great Depression (1929), the Stock Market had been a ....

• Bull Market (stock prices were increasing)

• Bear Market (stock prices were decreasing)

What does "speculation" in the stock market mean?

• Investing in bonds to secure fixed returns over time.

• Buying stocks using a stockbroker

• Buying stocks ignoring the risks or with credit (risky)

• Selling stocks at a lower cost

Buying on margin means people buy​ (a)   using​ (b)  

• stock
• houses
• cars
• credit
• cash
• war bonds

What is Black Tuesday?

• Over 16.4 million stock shares are sold; the stock market crashes

• When FDR got on the radio to talk to the American public about issues

• US decides to invade Europe to try & get money to help Americans

• Drought in the Great Plains area that caused soil to turn to dust & made huge storms

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

• banks closed
• banks only would give money back to those who made a $20,000 income

• people couldn't remember where they put their money

• someone stole it