APUSH QUIZ #3 STUDY GUIDE

1929 Stock Market Crash

The dramatic collapse of stock prices on October 29, 1929, leading to widespread financial panic and the onset of the Great Depression.

Overproduction

The situation where businesses and farmers produced more goods than could be consumed, leading to a surplus and contributing to economic instability.

Buying on Margin

A practice where investors borrowed money from brokers to purchase stocks, often leading to widespread financial loss when stock prices fell.

Speculation

The act of buying stocks with the hope of making quick profits based on price increases, creating an unstable market bubble.

Bank Failures

The collapse of numerous banks during the Great Depression due to bank runs and inability to recover loans, eroding public trust in the financial system.

Hawley-Smoot Tariff (1930)

A protectionist tariff law that raised U.S. import duties, leading to retaliatory tariffs from other nations and worsening the depression.

Agricultural Overproduction

The overproduction of crops in the 1920s, leading to falling prices and widespread farm bankruptcies.

Dust Bowl

A severe drought in the 1930s that caused massive dust storms and crop failures, displacing thousands of farmers.

Mass Unemployment

Unemployment reached as high as 25% during the Great Depression, with many Americans losing their jobs.

Hoovervilles

Makeshift shantytowns built by homeless people during the Great Depression, named after President Herbert Hoover.

Breadlines and Soup Kitchens

Charitable organizations and government efforts providing food for the hungry during the Great Depression.

Foreclosures

The process by which banks took possession of homes and farms when owners could not pay their mortgages.

Deflation

A decrease in the general price level of goods and services, leading to economic contraction.

Bank Runs

A situation where customers rush to withdraw deposits from a bank due to fears of insolvency.

Laissez-faire Economies

A policy where the government minimally interferes in economic activities, adhered to by Hoover initially.

Rugged Individualism

Hoover's belief in individual responsibility and reliance on personal efforts to recover from the depression.

Reconstruction Finance Corporation (RFC)

A government agency established in 1932 to provide financial aid to stabilize the economy.

Public Works Projects

Large-scale infrastructure projects funded by the government to create jobs and stimulate the economy.

Bonus Army 1932

A group of WWI veterans who marched on Washington, D.C., demanding early payment of bonuses promised to them.

Hawley-Smoot Tariff

The same tariff from earlier which worsened the global economic downturn during Hoover's administration.

Federal Farm Board

A government agency created in 1929 aimed at stabilizing farm prices by purchasing surplus crops.