Social Studies Quiz 9
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42 terms
Terms | Definitions |
|---|---|
 stock market | a system for buying and selling stocks in corporations |
| bull market | a long period of rising stock prices |
| margin | buying a stock by paying only a fraction of the stock price and borrowing the rest |
| margin call | demand by a broker that investors pay bacl loans made for stocks purchased on margin |
| speculation | act of buying stock at great risk with the anticipation that the price will rise |
| bank run | persistent and heavy demands from a bank's depositors, creditors, or customers |
| installment | buying an item on credit with a monthly plan to pay off the value of the good |
| hobo | a homeless and usually penniless wanderer |
| Dust Bowl | region of the Great Plains that experienced a drought in 1930 lasting for a decade, leaving many farmers without work or substantial wages |
| public works | projects such as highways, parks, and libraries built with public funds that gave jobs to the unemployed |
| relief | aid for the needy; welfare |
| foreclosure | to take possession of a property from a mortgagor because of defaults on payments |
| bonus army | the war veterans that marched for the passage of a bill that would authorize early payment to the veterans |
| bank holiday | closing of the banks during the Great Depression to avoid bank runs |
| fireside chats | radio braodcasts made by FDR to the American people to explain what has been happening in the government and to assure that recovery is near |
| New Deal | Roosevelt's policy for ending the Depression |
| Hundred Days | the time period when Congress passed 15 major acts, introduced by Roosevelt, to resolve the economic crisis |
| deficit spending | government practice of spending borrowed money rather than raising taxes, usually in an attempt to boost the economy |
| binding arbitration | process whereby a neutral party hears arguments from two opposing sides and makes a decision that both must accept |
| sit-down-strike | method of boycotting work by sitting down at work and refusing to work at and leave the establishement |
| American Liberty League | purpose was to organize opposition to the New Deal and "teach the necessity of respect for the rights of person and property" |
| court packing | the act of changing the political balance of power in a nation's judiciary system whereby a national leader appoints judges who will rule in favor of his or her policies |
| recovery | an economic upturn, as after a depression |
| broker state | role of the government to work out conflicts among competing interest groups |
| safety net | something that provides security against misfortune; speciafically, government relief programs intended to protect against economic disaster |
| people the Great Depression affected | business owners, children, families, farmers, homeowners, workers |
| escaping the Deprssion | movies, radio shows, comic books, literature, art |
| warning signs that went unnoticed | farmers overproduced; economic slowdown-automobiles and durable goods overproduced, consumers bought/spent less; many industries did not prosper; stocks purchased on margin |
| Black Tuesday | most stocks now worthless, many millionares now penniless |
| false | the crash of the stock market DID NOT cause the Great Depression |
| causes of the Great Depression | uneven distribution of wealth, increase in tariffs, downward cycle, overproduction, low interest rates, banks failed |
| uneven distribution of wealth | top 5% of households earned 30% of the nation's income; 66% of households earned less than $2,500 per year |
| low interest rates | encouraged banks to make risky loans; many thought economy was still growing- led to overproduction; raised rates when depression hit- big mistake |
| overproduction | overproduction of all goods especially of durable goods; wages were lower so fewer could buy the products |
| banks failed | many speculators borrowed money; loans could not be paid back; depositors could not get savings; widespread bank closings; many lost life savings |
| Hawley-Smoot Tariff | raised the average tariff rate to the highest in history; foreign companies responded by raising tariffs on American products decreasing our foreign sales |
| rugged individualism | the belief that all individuals can succeed on their own- government help for people should be minimal |
| who should help | churches/religions, state government, local government, wealthy charities |
| Nation Credit Corporation | created a pool of money so banks could continue leading |
| Reconstruction Finance Corporation | make loans to businesses |
| Brain Trust | experts on economic issues, assisted FDR in planning the New Deal programs to end the Depression |
| New Deal | laws passed to end the Depression; relief for unemployed, plans for recovery, reforms to prevent another depression |
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