Chapter 14
Terms
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- price support
- law keeps prices above set level
- Alfred E. Smith
- Democratic presidential candidate in 1928
- speculation
- Investments in high-risk ventures
- buying on margain
- Buying stock by paying only portion of full cost up-front with promises to pay rest later
- Black Tuesday
- October 29, 1929 day stock market crashed
- Great Depression
- period of bad economic times in u.S. lasted from 1929 to 1941
- Dow Jones Industrial Average
- Index of stock prices of select companies
- Hawley-Smoot Tariff Act
- Law raised taxes on imports and worsened Depression
- What problems did farmers in 1920s?
- Demand for food dropped and farmers income went down couldn't make mortgage and lost land
- Why was stock market crash of 1929 important?
- People panicked wanted to sell stocks but no one would buy them. Beginning of gReat Depression when many people didn't have jobs.
- Herbert Hoover
- 31st president
- Boulder Dam
- Dam on Colorado River built during Depression to create jobs
- Federal Home Loan Bank Act
- Law passed in 1931 to reduce mortgage rates to save farmers from foreclosure
- Reconstruction Finance Corporation
- Agency established in 1932 to provide emergency relief to large businesses insurance companies and banks.
- What did Hoover think government should do in bad economic times?
- Hoover believed governments should help different groups to work together to improve economy, not to take too much power ten courage private groups to help needy.
- What actions did Hoover take to improve economy?
- gave jobs to unemployed workers and raised prices of farmers crops gave loans to bank and were failing.