Causes of the Great Depression

Pages 469-473
Answer the following questions on a separate piece of paper.
1. What quote by Herbert Hoover during the presidential election painted a rosy picture
of the future?
2. Who were the two candidates during the Presidential election of 1928?
. What first could !"ith clai"?
#. What was the "a$or issue of the ca"paign?
%. What was !"ith&s biggest proble" running for President?
'. What is a long period of rising stoc( prices called?
). What was buying on "argin?
8. What were "argin calls?
9. *n the late 192+&s what had hoards of investors done?
1+. What is speculation?
11. Why did "argin calls cause the stoc( "ar(et to drop?
12. What did ,ctober 29
th
1929 beco"e (nown as? Why?
1. *n what two ways did the stoc( "ar(et crash wea(en the nation&s ban(ing syste"?
1#. When ban(s suffered losses- what did they cut bac( on? How did this har" the
econo"y?
1%. What happened to people&s "oney in ban(s that failed? What federal progra" was
not around then that we have today that insures your ban( deposits? Hint . /ultural
0iteracy word.
1'. When does a ban( run ta(e place?
1). What happened to ban(s during the first two years of the 1reat 2epression?
18. What do "ost econo"ists believe was a (ey cause of the 1reat 2epression?
19. What did low consu"ption of products lead "anufactures to do?
2+. 3 tariff is a ta4 on i"ported goods. How did the tariff passed in 19+ har" 3"erican
business and far"ers?
21. *n what two ways did the 5ederal 6eserve interest rate policy help cause the 1reat
2epression?