(US History) Chapter 8: Stock Market & Crash

What is it called when you buy a stock with borrowed money?

Buying on margin

Give me an example of Collateral and explain why it is an example

Collateral is an item of value that a borrower agrees to forfeit to the lender if the borrower cannot repay the loan

When stocks are doing well we call the market this...

Bull Market

What is the DOW Jones Industrial Average?

An average of stock prices of major industries

What is the day and date of the stock market crash?

Tuesday October 29th, 1929

List the 8 ripple effects of the stock market crash:

Risky Loans
Consumer Barrowing
Bank Runs
Bank Failures
Saving Wiped Out
Cuts in production
Rise in unemployment
Further cuts in production

What does GNP stand for?

Gross National Product

Protectionism

An economic policy where governments restrict international trade with the goal to protect domestic industries from foreign completion

Smoot-Hawley Tariff Act

(1930) Raised tariffs / taxes on over 20,000 imported goods.

Trying to shield American industries from foreign competition.