18.1 Notes

What was the consequence of soaring stock prices based on confidence?

Many investors faced economic devastation when the market reversed.

What event is referred to as Black Thursday?

October 24, 1929, the day when investors began to sell stock due to failing confidence.

What marked the beginning of the Great Depression?

The stock market crash of 1929.

What was the average drop of the Dow Jones on October 23, 1929?

21 points in one hour.

What happened on Black Tuesday?

The stock market collapsed on October 29, 1929, leading to the sale of more than 16 million shares.

What was a significant result of the Great Crash on the banking system?

Frustrated depositors feared for their money, leading to withdrawals and bank failures.

What was a cause of many bank failures during the Great Depression?

Misguided monetary policies by the Federal Reserve.

What environmental disaster compounded the struggles of farmers during the Great Depression?

Severe droughts leading to dust storms.

What was the Federal Reserve's role during the 1920s?

It cut interest rates to stimulate economic growth but limited the money supply.

What was President Hoover's response to the economic crisis?

Initially followed a hands-off policy, rejecting direct federal aid.

What was Franklin D. Roosevelt's New Deal?

A series of federal programs aimed at recovery and relief during the Great Depression.

What was the purpose of the Federal Emergency Relief Act?

To provide emergency relief and enable hiring on various projects.

What did the Civilian Conservation Corps (CCC) provide?

Jobs for young men in environmental projects.

What significant act established the Federal Deposit Insurance Corporation?

To insure bank deposits to prevent loss of savings.

What program was most significant for providing unemployment insurance?

The Social Security Act.

How did Roosevelt communicate directly with Americans?

Through 'fireside chats' where he explained national challenges.