The stock market crashed on October , 1929, a day known as Black Tuesday.

The stock market crashed on October 29 , 1929, a day known as Black Tuesday.

Define stock market .

The stock market is where investors buy and sell shares , which are pieces of ownership in companies .

Define over-speculation .

Over-speculation is buying stocks on the assumption that prices will keep rising , rather than on the companies' real value .

Define buying on the margin .

Buying on the margin is borrowing money from banks or brokers to buy stocks , paying only a small percentage upfront .

Why did buying on the margin cause ruin when prices fell?

Investors could not repay their loans , leading to widespread financial ruin .

Define overproduction .

Overproduction is when farms and factories produce more goods than people can afford to buy , causing prices to drop .

How did high consumer debt weaken the economy?

Many Americans had borrowed heavily for homes, cars, and household goods and were unable to repay their loans .

How did the Smoot-Hawley Tariff (1930) hurt the economy?

It made imported goods expensive , hurting international trade .

True or False? During the Great Depression, 25% of the US workforce lost their jobs.

True. Nearly 13 million workers lost their jobs as businesses closed after the stock market crash.

Why did thousands of banks collapse after the crash?

Loans to investors and businesses could not be repaid , and millions of Americans lost their life savings .

How did the collapse of consumer confidence worsen the Depression?

Americans stopped spending and investing , so businesses failed , causing more unemployment and closures .

A Hooverville was a makeshift shantytown built by people who lost their homes during the Depression, named after President Herbert Hoover , who was blamed for failing to address the crisis .

True or False? Americans who kept their jobs after the stock market crash saw their wages stay roughly the same.

False. For those still employed, wages dropped by nearly 50% , forcing many into poverty .

AP®HistoryCollege BoardUS HistoryFlashcardsPeriod 7: 1890-1945The Great Depression

The Great Depression (College Board AP® US History): Flashcards

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FrontAn Era of Great Hardship
The stock market crashed on October , 1929, a day known as Black Tuesday.

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The stock market crashed on October , 1929, a day known as Black Tuesday.
The stock market crashed on October 29, 1929, a day known as Black Tuesday.
Define stock market.
The stock market is where investors buy and sell shares, which are pieces of ownership in companies.
Define over-speculation.
Over-speculation is buying stocks on the assumption that prices will keep rising, rather than on the companies' real value.
Define buying on the margin.
Buying on the margin is borrowing money from banks or brokers to buy stocks, paying only a small percentage upfront.
Why did buying on the margin cause ruin when prices fell?
Investors could not repay their loans, leading to widespread financial ruin.
Define overproduction.
Overproduction is when farms and factories produce more goods than people can afford to buy, causing prices to drop.
How did high consumer debt weaken the economy?
Many Americans had borrowed heavily for homes, cars, and household goods and were unable to repay their loans.
How did the Smoot-Hawley Tariff (1930) hurt the economy?
It made imported goods expensive, hurting international trade.
True or False?
During the Great Depression, 25% of the US workforce lost their jobs.
True.
Nearly 13 million workers lost their jobs as businesses closed after the stock market crash.
Why did thousands of banks collapse after the crash?
Loans to investors and businesses could not be repaid, and millions of Americans lost their life savings.
How did the collapse of consumer confidence worsen the Depression?
Americans stopped spending and investing, so businesses failed, causing more unemployment and closures.
Define Hooverville.
A Hooverville was a makeshift shantytown built by people who lost their homes during the Depression, named after President Herbert Hoover, who was blamed for failing to address the crisis.
True or False?
Americans who kept their jobs after the stock market crash saw their wages stay roughly the same.
False.
For those still employed, wages dropped by nearly 50%, forcing many into poverty.

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