Unit 7 History Test

Stock Market

A system for buying and selling shares of a company

Bull Market

A period of rising stock market prices

Margin

Paying a cash down payment to purchase a stock, borrowing the rest

Margin Call

Demand from a broker to repay margin loans at once

Speculation

Betting that the stock market would continue to rise

Black Tuesday

October 29, 1929 (market crash), $10-$15 billion stock value

Installment

Purchase an item with a small down payment, then pay monthly for the rest

Hawley-Smoot Tariff

Raised tariffs on foreign goods

Baliff

Court officer who ejected non-paying tenants

Shantytown

Communities of homeless people living on public lands

Hooverville

Name given to Shantytowns, by people who blamed the president

Hobo

Homeless, unemployed people who wandered the country

Dust Bowl

Extensive drought in the Great Plains

Soap Opera

Radio dramas with laundry soap sponsors

Public Works

Government financed building projects

Relief

Money that went directly to impoverished families

Foreclose

Creditors taking possession of land and evicting families

Bonus Army

WWI veterans who marched on D.C. to get their benefits now

New Deal

FDR’s policies for ending the depression

Bank Holiday

Closing the nation’s banks for recovery

Fireside Chats

Direct talks FDR had with Americans on the radio

Deficit Spending

Spending with borrowed money to pay for the New Deal programs

Alfred Smith

Democratic candidate in 1928 for president, catholic and anti-prohibition

Groucho Marx

Comic star wiped out by the stock market crash

Walt Disney

Created feature-length animated films

John Steinbeck

Novelist who wrote “The Grapes of Wrath”

William Falkner

Author who exposed hidden attitudes of southern whites and African-Americans

Herbert Hoover

Served as president at the start of the Great Depression

Franklin Roosevelt

Elected president in 1932, created the New Deal

Frances Perkins

First female cabinet member; Secretary of Labor

Huey Long

Democratic presidential candidate, challenged FDR by attacking the rich

Father Charles Coughlin

Catholic priest who used radio to rally against the New Deal programs

5 problem areas in the U.S. economy during the 1920s:

1) Unemployment

2) Overproduction

3) Farming

4) Credit

5) Unequal distribution of income

Why did farmers struggle in the 1920s?

Demand for crops soared, prices fell

Why was the gap between the rich and poor growing?

The increased manufacturing output and the distribution of income

Why did Hoover win the 1928 election so easily?

He emphasized years of prosperity under republican administrations

What is the Dow Jones?

A measure based on the price of 30 large firms

What 2 problems emerged to cause trouble in the stock market?

Farming crisis, credit buying

What was Black Tuesday?

The day the stock market crashed, October 29, 1929

Why did so many banks fail after the crash?

They ran out of money

How did the Hawley-Smoot Tariff affect the U.S. economy?

It raised the price of imports majorly and decreased the amount of exported goods

5 causes of the Great Depression:

1) Tariffs

2) U.S. demand low

3) Farm sector crisis

4) Easy credit

5) Unequal distribution of wealth

Rise of unemployment after the crash:

Everyone lost their savings so companies’ prices started to fall, causing them to cut back on workers

How did the depression affect minorities?

They struggled to find a job; they were always the last to be hired, first to be fired

How did the depression affect farmers?

Grew a demand in crops, prices fell, demand for machinery

What was Hoover’s philosophy towards the depression?

He believed an economy based on capitalism would self-correct

Hoover’s Dam Project:

$49 million, its construction resulted in thousands of jobs for people, hundreds of deaths, finished in 1935

Most income rise was seen by what percent of the population?

1%

Hoover’s belief that people shouldn’t rely on the government, they should take care of themselves

Rugged Individualism; Laissez-Faire

What was one of Hoover’s attempts to solve the depression?

Hoover Dam

Who fought in the boxing match that symbolized U.S. and Germany?

Schmeling vs. Louis

Hoover’s program to help farmers:

Federal Farm Board

What high percentage rate did unemployment hit in 1933?

25%

How was the bonus army dispersed?

They were called into the military

What event created a large crop demand?

World War ll

FDR’s initial plan to help the bank crisis:

Close down the banks

75% of Americans earned less than $______?

$2,500

2 generals in charge of removing the bonus army, later fought in WWll:

Eisenhower and MacArthur

2 biggest problems with the stock market:

Margin buying, speculation

Adolf Hitler vs. FDR political party

Nazi; Democratic