US History Chapter 11 Vocabulary

Questions and Answers

What were the causes of the Great Depression?

Stock Market Crash

Bank Failures

High Tariffs

All of the Above (correct)

What is a stock market?

A system for buying and selling stocks in corporations.

What does a bull market indicate?

A long period of rising stock prices.

What is margin in investing?

Buying a stock by paying only a fraction of the stock price and borrowing the rest. Signup and view all the answers

What does a margin call mean?

A demand by a broker that investors pay back loans made for stocks purchased on margin. Signup and view all the answers

What is speculation in the stock market?

The act of buying stocks at great risk with the anticipation that the price will rise. Signup and view all the answers

What is a bank run?

Persistent and heavy demands from a bank's depositors, creditors, or customers. Signup and view all the answers

What does installment mean in finance?

Buying an item on credit with a monthly plan to pay off the value of the good. Signup and view all the answers

What does collapse refer to in economic terms?

A sudden loss of force, value, or effect. Signup and view all the answers

What does it mean to invest?

To put money into a company in order to gain a future financial reward. Signup and view all the answers

What is a sum?

A specified amount of money. Signup and view all the answers

Who was Alfred E. Smith?

A Democrat who ran for presidency in 1928. Signup and view all the answers

What is Black Tuesday?

October 29, 1929, when stock prices fell sharply. Signup and view all the answers

What is the Hawley-Smoot Tariff?

A tariff that raised the average tariff rate to the highest in American history. Signup and view all the answers

What does a bailiff do?

A minor officer of the courts. Signup and view all the answers

What is a hobo?

A homeless and usually penniless wanderer. Signup and view all the answers

What is a soap opera?

A serial drama on television or radio using melodramatic situations. Signup and view all the answers

What does suspend mean in a banking context?

To temporarily stop an operation. Signup and view all the answers

What is a colleague?

A person who works in the same, or similar, profession. Signup and view all the answers

What is a technique?

A method of achieving a desired task. Signup and view all the answers

What was the Dust Bowl?

Region of the Great Plains that experienced a drought lasting for a decade. Signup and view all the answers

Study Notes

The Causes of the Great Depression

The Great Depression was marked by significant economic downturns impacting many sectors.
Stock Market: A system facilitating the buying and selling of company stocks; necessitated careful monitoring for profits.
Bull Market: Characterized by a prolonged increase in stock prices, benefitting investors and brokers financially.
Margin: Allows investors to purchase stocks by only paying part of the price upfront, which could amplify profits but increased risks.
Margin Call: Brokers requiring repayment for loans used to buy stocks on margin if stock prices fall, pressuring investors to sell.
Speculation: High-risk stock purchases with hopes of rapid price increases, contributing to market instability.
Bank Run: Occurs when customers withdraw their deposits en masse due to fears of bank insolvency, often leading to actual bank failures.

Economic Practices and Impact

Installment: Purchasing goods on credit with scheduled payments, enabling consumers to buy immediately while spreading cost over time.
Collapse: Refers to the sudden devaluation or failure of assets; particularly relevant during the stock market crash leading to widespread financial loss.
Invest: The act of allocating money into businesses in anticipation of future returns, demonstrated by investments in thriving companies like Disney.
Sum: Refers to total amounts, highlighting financially significant figures, e.g., total wages in 1929.

Key Historical Figures and Events

Alfred E. Smith: A Democratic presidential candidate in 1928, representing an era of perceived economic prosperity.
Black Tuesday: October 29, 1929, when the stock market experienced a catastrophic crash, resulting in massive financial losses.
Hawley-Smoot Tariff: A protective tariff that raised import rates to unprecedented levels, ultimately hindering international trade despite initial intentions.

Life During The Depression

Bailiff: A court officer associated with evictions and property dispossessions, often feared by economically struggling families.
Hobo: A term for itinerant workers seeking employment and a better life, often traveling via freight trains during tough times.
Soap Opera: Dramatized serial entertainment on radio or TV, providing escapism for audiences during the difficult Depression era.
Suspend: The temporary halting of bank operations due to insufficient funds, illustrating how dire the economic conditions were.
Colleague: Refers to individuals in related professions; during the Depression, corruption resulted in firings within government ranks.

Environmental Impact

Dust Bowl: A major ecological disaster of the 1930s in the Great Plains resulting from severe drought, forcing many farmers to relocate in search of work and better living conditions.

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Description

Test your knowledge of key terms from Chapter 11 of US History. This quiz covers essential vocabulary, including the causes of the Great Depression and important concepts related to the stock market. Get ready to explore the terminology that shaped this critical period in American history.