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Great Depression and New Deal Test
Terms in this set (31)
What was Black Tuesday?
October 29, 1929. a record 16.4 million shares were sold compared to the average 4 to 8 million in the past
What led to Black Tuesday
In early 1928, the Dow Jones Industrial Average had risen drastically. It continued to rise until October 23, 1929 when the stock market closed. The Jones Average dropeed 21 points in 1 hour. It continued to drop and to ease the panic, a group of bankers pooled all of their money to buy stocks which stabalized the economy only for a little while. The next tuesday was Black Tuesday
What was the Great Crash?
The collapse of the stock market in 1929. Overall losses totaled over 30 billion dollars
What was the "Ripple Effect" of the Great Crash?
1. Risky loans hurt banks- through the 1920's many banks loaned businesses high loans. After the Crash, the businesses were no longer to pay the banks back
2. Consumer Borrowing- Banks would loan consumers money and they werent able to pay it back after the Crash
3. Bank Runs- with the downturn of the market, many consumers wanted to withdrawal their money and the bank couldnt withdraw all of it
4. Bank Failures
5. Savings wiped out
6. Cuts in Production
7. Rise in unemployment
8. Further cuts in production
What was the Great Depression
Was the result of the Great Crash, lasted from 1929 to the start of the war
What were the main causes of the great depression?
An unstable economy- the uneven prosperity of the 20's made a rapid recovery impossible
What were "Hoovervilles"?
Hoovervilles was a slang term coined to describe homeless shelters and living areas. Herbert Hoover was president at the time
What was the Dust Bowl
Between 1931 and 1940, so much soil blew out of the central and southern great plains that this region became known as the dust bowl. Made for horrible farming conditions
What was the 21st amendment?
Repealed Prohibition of the sale of alcohol. Repealed the eighteenth amendment, 15 years after it was passed
What were penny auctions?
farmers would bid pennies at a time to buy new machines and equipment to try and keep their struggling farms alive
What were the Bonus Armies?
20,000 jobless veterans camped in Washington in the summer of 1932. They wanted immediate payment of a pension.
What was the outcome of the 1932 election?
FDR won with a 472 to 59 electoral vote victory.
What was the New Deal
The New Deal referred to the reform, recovery and relief programs created by Roosevelt.
What was the first hundred days
describes the first hundred days of the new deal programs
What does FERA stand for
Federal Emergency Relief Administration
What did the TVA do?
Provided hydroelectric power, flood control,and recreational opportunities to the TN River Valley and surrounding areas
What does CCC stand for
Civilian Conservation Corps
What does FDIC stand for
Federal Deposit Insurance Corporation
What does FHA stand for
Federal Housing Administration
What does SEC stand for
Securities and Exchange Commission
What does WPA stand for
Works Progress Administration
What does REA mean
Rural Electrification Administration
What does SSA stand for
Social Security Administration
What was the purpose of the FERA
to provide funds to state and federal relief agencies
What was the purpose of the CCC
Provided jobs to young unmarried men to work on conservation and resource developments
What was the purpose of the FDIC
Insured bank deposits of up to 5,000 dollars
What was the purpose of the FHA
Improved housing standards and provided home financing
What was the purpose of the SEC
Regulated stock market and protected people from dishonest trade
What was the WPA
Gave the unemployed work in building construction and arts programs
What was the REA
Provided loans for building power plants, extending power lines, and wiring homes
What was the SSA
Provided social security benefits for older people and disabled people