What were the Causes & Consequences of the Wall Street Crash? (Cambridge (CIE) IGCSE History): Flashcards
Exam code: 0470 & 0977
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Define Speculation.
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Define Speculation.
Speculation is when a person buys something in the hope that its value will increase, so they can sell it later at a higher price to make a profit.
Define Wall Street.
Wall Street is the name given to the US Stock Exchange.
What did buying shares 'on the margin' mean?
Buying shares 'on the margin' meant that investors only paid for about 10 per cent of the shares and borrowed the money to pay for the rest.
Buying shares by paying only around 10 per cent up front and borrowing the rest was called buying 'on the '.
Buying shares by paying only around 10 per cent up front and borrowing the rest was called buying 'on the margin'.
On what date did the Wall Street Crash begin?
The Wall Street Crash began on 24 October 1929, which became known as 'Black Thursday'.
By what name did 24 October 1929 become known?
24 October 1929 became known as Black Thursday.
How many shares were sold on the New York Stock Exchange on 24 October 1929?
On 24 October 1929, 13 million shares were sold on the New York Stock Exchange.
Approximately shares were sold on 29 October 1929 as prices continued to fall.
Approximately 16 million shares were sold on 29 October 1929 as prices continued to fall.
How many American banks went bust in 1929?
A total of 659 American banks went bust in 1929.
Which three underlying economic problems caused the US economy to slow in 1929?
The US economy slowed in 1929 because of low exports, uneven income distribution and overproduction of consumer goods.
What did the Wall Street Crash of 1929 trigger?
The Wall Street Crash of 1929 triggered the Great Depression.
True or False?
People who bought shares 'on the margin' had paid for the shares in full.
False.
They only paid for about 10 per cent of the shares and borrowed the money to pay for the rest.
Define Hobos.
Hobos were people who travelled from state to state looking for work during the Great Depression.
By how much had industrial production fallen by 1932?
By 1932, industrial production had fallen by 45%.
By how much had car production fallen by 1932?
By 1932, car production had fallen by 80%.
How many businesses went bankrupt between 1929 and 1932?
Over 100,000 businesses went bankrupt between 1929 and 1932.
Share prices did not stop falling for years after the crash.
Share prices did not stop falling for three years after the crash.
Why did many savers rush to withdraw their money after the crash?
Many savers rushed to withdraw all their savings before their bank went bust, which made the situation for banks even worse.
Why did banks struggle in the aftermath of the crash?
Banks struggled because too many loans had been given to people to buy shares 'on the margin' before the crash.
How many farmers lost their land during the Great Depression?
Around 750,000 farmers lost their land during the Great Depression.
Why did farmers' loan repayments become more expensive after 1929?
Farmers' loan repayments became more expensive because interest rates increased between 1929 and 1932.
By 1933, around one in US citizens (14 million) were unemployed.
By 1933, around one in four US citizens (14 million) were unemployed.
Why did many coal mines close during the Depression?
Many coal mines closed because demand for coal fell as fewer factories required power and heating.
True or False?
Unemployed Americans received welfare and unemployment benefits during the Depression.
False.
There were no welfare or unemployment benefits for those who had lost their jobs, yet rent and mortgages still had to be paid.
Define Hoovervilles.
Hoovervilles were settlements of temporary housing built on wasteland out of whatever materials people could find, named as an attack on President Hoover.
Define Sharecroppers.
Sharecroppers were farmers who had to give part of their crop to a landowner as rent.
Define Dust Bowl.
The Dust Bowl was when drought conditions combined with strong winds on the Great Plains in 1930 to blow away the topsoil, decreasing the fertility of millions of acres of farmland.
From what percentage to what percentage did unemployment rise between 1929 and 1933?
Unemployment rose from 3% in 1929 to 25% in 1933.
Why were the shanty settlements named 'Hoovervilles'?
They were named as an attack on President Hoover for his government's failure to help people during the Depression.
By 1932, over Americans were unable to repay their mortgages.
By 1932, over 250,000 Americans were unable to repay their mortgages.
How did employers treat workers who kept their jobs after the crash?
Employers reduced wages and increased working hours for the workers who kept their jobs.
Where did many farm workers migrate to in search of jobs?
Many farm workers headed to the citrus farms of California in search of jobs.
What caused the soil erosion in the Midwest?
The soil erosion in the Midwest was caused by overcultivation.
To which northern cities did former sharecroppers move in search of work?
Former sharecroppers moved to northern cities such as Chicago and New York in search of work.
In California, some immigrant workers were deported from the US and repatriated to .
In California, some immigrant workers were deported from the US and repatriated to Mexico.
True or False?
The US government provided social security to help unemployed workers after the crash.
False.
The US had no social security in the 1920s, and the Republican government expected unemployed workers to resolve their own problems.
Define Rugged individualism.
Rugged individualism was Hoover's belief in self-reliance, the idea that people should solve their own problems and that this would pull America through.
Define Smoot-Hawley tariff.
The Smoot-Hawley tariff was a measure introduced by Hoover that increased the price of foreign imports to encourage Americans to buy US goods.
What did Hoover declare to the American people in January 1930?
In January 1930, Hoover declared that 'we have now passed the worst'.
What was the unintended consequence of the Smoot-Hawley tariff?
It caused foreign countries to introduce tariffs on US goods, so US exports collapsed and companies went bust.
Who were the Bonus Marchers?
The Bonus Marchers were a group of 25,000 First World War veterans who wanted their war pension paid immediately rather than in 1945.
The Bonus Marchers set up a Hooverville directly outside the in March 1932.
The Bonus Marchers set up a Hooverville directly outside the White House in March 1932.
How did the US Army remove the Bonus Marchers?
The US Army used tear gas and tanks to move the Bonus Marchers, killing two protestors and a baby and injuring more than 1,000 people.
Which political party did Franklin D. Roosevelt represent in 1932?
Roosevelt was the Democratic presidential candidate in 1932.
Whom did Roosevelt promise his government would help?
Roosevelt promised that his government would help the 'forgotten man'.
What did Roosevelt promise to resolve the Depression?
Roosevelt promised a 'New Deal' to resolve the Depression.
In the 1932 election, Roosevelt won the vote in states, while Hoover won in just six.
In the 1932 election, Roosevelt won the vote in 48 states, while Hoover won in just six.
True or False?
Roosevelt won the 1932 election by around 8 million more votes than Hoover.
True.
Roosevelt won 8 million more votes than Hoover in the biggest landslide in US history.
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