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The Crash 21.1 Flashcards | StudBud
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The Crash 21.1
How did the crash affect banks?
Why were many European economies so fragile?
The Crash 21.1
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The Stock Market Crash
Flashcards
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Questions
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Answers
1
Why were many European economies so fragile?
high protective tariffs
still recovering from WWI
the U.S. wasn't buying many imports
very little international trade taking place
2
How did the crash affect banks?
many banks forced to close
banks lost $ in the stock market
were not able to collect loans to stockbrokers
funds depleted by massive withdrawals
3
How much did the stock market value increase in 1928?
25%
100%
10%
50%
4
What was the unemployment rate between 1923 and 1929?
5%
3%
25%
9%
5
Why did the Federal Reserve make it more difficult and costly for people to buy on margin?
tried to weed out those who shouldn't be gambling in stocks
people were becoming addicted to this risky activity
tried to promote healthy economic activity
the Feds realized that buying on margin could cause trouble
6
What is Gross National Product?
powdered protein...now that's gross
sick production skills
disgusting things made by a country
total value of goods and services produced by a nation
7
Describe Harding’s and Coolidge’s attitude toward business?
close government regulation of business
hands off
the business of America is business
laissez faire
8
Why were margin buyers particularly hard it with the stock market collapse?
they didn't want to fork over their profits
brokers wanted back their $
they lost their $ and the $ they borrowed
they had no means to pay off their loans
9
By how much did the GNP increase between 1922 and 1928?
15%
110%
it decreased by 10%
30%
10
Why did people think so highly of this president?
served as Sec. of Commerce under Harding and Coolidge
effectively organized food production during WWI
directed relief efforts in Europe after WWI
he was a Republican
11
Define “buying on margin”:
waiting for prices to rise
waiting for prices to drop
borrowing money to invest
buying stocks with loans from stockbrokers
12
Why is buying on margin so risky?
not guarantee of profits
what?
you're gambling with others' money
could lose your money and the money you borrowed
13
What did fear about falling stock prices cause people to do?
sell they're stock
sell thare stock
sell there stock
sell their stock
14
What was one sign of a troubled economy that many people in the financial world recognized?
personal savings increased dramatically
rumors that investors might take their $ out of the market
demand for products outpaced supply
sales of manufactured good were lagging badly
15
What effect did the crash have on business?
couldn't get $ from banks to expand
many businesses closed
consumers cut back on purchases
layoff of workers
16
Define “stock”:
stout person
type of racing care
barrel of a gun
partial ownership in a company
17
Who won the 1928 election?
Harding
Hoover
Roosevelt
Trump
18
Define “share”:
you scratch my back, I'll scratch yours
something I don't do
denomination in which stocks are bought and sold
half of Sonny
19
What was a sign of tough times ahead?
personal savings rate decline significantly
farmers and other workers had long been struggling
many Americans reaching their credit limit
unequal distribution of wealth
20
What did President Hoover and many others firmly believe about the economy?
our economy is in big trouble
it would soon recover
it's screwed
would be ok
21
For many, why was investing in the stock market a “joy ride” for most of the 1920s?
continually rising stock prices
a joy ride was better than a highway to hell
stocks were an easy way to make money
it seemed that anyone could make money on stocks
22
How did the passing of protective tariffs around the world hurt the world economy?
virtually halted international trade
increased international trade
increased global warming
Donald Trump
23
Why did other industries flourish as the automobile industry thrived?
standardized production was the key
they made products related to the automobile
that was the general trend for all business
why not
24
Who will win this year's presidential election?
Republican
Democrat
25
Farmers’ incomes had dropped during the 1920s. Why?
demand outpaced supply
supply outpaced demand
they weren't working hard enough
harsh growing conditions
