Questions and Answers
Which of the following are root causes of the Great Depression? (Select all that apply)
Which of the following are effects of the Great Depression? (Select all that apply)
What is buying on margin?
A practice that allows people to buy stock with a down payment of a portion of the value.
What does Black Tuesday refer to?
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What was the main cause of the Great Depression?
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What does it mean to be bankrupt?
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What is a relief program?
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What is a soup kitchen?
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What is a Hooverville?
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What did the Hawley-Smoot Tariff do?
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What is the National Industrial Recovery Act?
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What does the Federal Deposit Insurance Corporation do?
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What were some hardships faced by women during the Great Depression?
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What were some hardships faced by African Americans during the Great Depression?
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What were some hardships faced by Mexican Americans during the Great Depression?
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What were some hardships faced by Asian Americans during the Great Depression?
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What were some hardships faced by Native Americans during the Great Depression?
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What is the Dust Bowl?
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What is a migrant worker?
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Study Notes
Root Causes of the Great Depression
- Overproduction by farms and factories led to goods exceeding consumer demand.
- Banks offered loans that borrowers were unable to repay, contributing to financial instability.
- Stock market crash initiated a lack of investor confidence, hampering business growth.
Effects of the Great Depression
- Widespread bank failures led to loss of savings for many individuals.
- Numerous businesses and factories shut down, causing economic turmoil.
- Millions of Americans lost jobs, resulting in homelessness and hunger.
- Families experienced fragmentation and severe societal suffering.
Buying on Margin
- A financial practice allowing consumers to purchase stocks by paying only a fraction of the stock's value upfront.
Black Tuesday
- The date of the significant stock market crash that marked the onset of the Great Depression.
Overview of the Great Depression
- The 1929 stock market crash ended the economic boom of the 1920s, leading to a major global crisis.
- The U.S. experienced a staggering 89% decline in stock prices.
- Manufacturing output declined to 54% of the 1929 level by 1932, with unemployment rates soaring to 25-30%.
- Rural areas, particularly the Great Plains, suffered from devastating droughts and dust storms, impacting farmers significantly.
- A surge in protests, hunger marches, and union activities occurred, while many suffered in silence.
- Countries adopted protectionist trade laws in response to economic chaos.
- By late 1932, U.S. stock prices were only 20% of their previous value, with over 11,000 banks failing by 1933.
Bankruptcy
- Defined as the inability to pay off debts, affecting individuals and businesses alike.
Relief Programs
- Government initiatives designed to provide assistance to those in need during the Great Depression.
Soup Kitchen
- Facilities providing food at little or no cost to individuals requiring assistance.
Hooverville
- Makeshift communities of shacks where many homeless individuals resided during the Great Depression.
Hawley-Smoot Tariff
- 1930 legislation that raised import duties significantly, worsening the global economic situation.
National Industrial Recovery Act
- Legislation aimed at establishing regulations for business operations to stabilize the economy.
Federal Deposit Insurance Corporation (FDIC)
- A government agency that insures deposits in approved banks to maintain public confidence in the financial system.
Hardships Faced by Women
- Women often struggled to find jobs as hiring preference was typically given to men.
Hardships Faced by African Americans
- African Americans were among the first to lose jobs during the Depression, facing ongoing discrimination, though some became advisers to President Roosevelt.
Hardships Faced by Mexican Americans
- They encountered significant discrimination, leading to some being coerced back to Mexico.
Hardships Faced by Asian Americans
- Discrimination persisted, resulting in job competition and calls for repatriation.
Hardships Faced by Native Americans
- Experienced intense poverty, yet new congressional laws provided them greater control over their affairs.
Dust Bowl
- A severe drought affected the central Great Plains, exacerbating the economic situation for farmers.
Migrant Worker
- Individuals who move from one area to another in search of employment, often related to agricultural work.
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Description
Explore the root causes and significant effects of the Great Depression through this interactive flashcard quiz. Understand how overproduction, bank failures, and unemployment shaped this critical period in history.
