16-2 QUESTIONS AND ANSWERS
01. What gives people the average of stock prices of leading industries?
Dow Jones Industrial Average
02. When was Hoover inaugurated?
March 4, 1929
03. When did the stock market reach its peak?
September 1929
04. The beginning of the crash began on October 24, 1929. What is this day known as?
Black Thursday
05. What was done by a group of bankers to solidify the stock market?
Pooled their money to buy stocks
06. The collapse of the stock market is known as what?
Black Tuesday
07. Out of a population of 120 million in 1929, how many had invested in the stock market?
4 Million
08. The crash of the stock market began a period known as what?
Great Depression
09. When did Henry Ford close his factories in Detroit?
1931
10. What did many European nations have to protect from a Great Depression?
Unemployment Insurance
11. How many people were unemployed by 1932? What percent of the labor force was this?
13 Million—25%
12. The total annual goods and services produced by a nation is called what?
GNP
13. What does GNP stand for?
Gross National Product
14. The GNP had declined by what percent between 1929 and 1933?
45%
15. Not only was the American farmer hurt by a severe drop in crop prices, but they also experienced which natural disaster?
Dust Bowl (drought)
16. What forced many banks to close?
Run on Money
17. Approximately how many banks foreclosed?
5,500
18. After World War I, the U.S. demanded the debts be paid of which former allies?
Britain and France
19. What did the U.S. do to make it difficult for its former allies to pay off their war debts?
High Tariffs
20. What did America’s former allies have to rely on to pay its wartime debts to the U.S.?
German reparations
21. What was the key to Germany being able to pay its reparations?
U.S. business investment
22. What happened when American investments in Germany declined?
Germany stopped reparation payments—Allies stopped debt payments
23. What is security on a loan called?
Collateral
24. What regulates the amount of money in circulation?
Federal Reserve System
25. Initially, what did the Federal Reserve do to spur economic growth?
Lowered Interest Rates
26. Worried about overspeculation, what did the Federal Reserve do in 1929 in an attempt to correct the situation?
Tight-Money Supply (Deflation)
Dow Jones Industrial Average
02. When was Hoover inaugurated?
March 4, 1929
03. When did the stock market reach its peak?
September 1929
04. The beginning of the crash began on October 24, 1929. What is this day known as?
Black Thursday
05. What was done by a group of bankers to solidify the stock market?
Pooled their money to buy stocks
06. The collapse of the stock market is known as what?
Black Tuesday
07. Out of a population of 120 million in 1929, how many had invested in the stock market?
4 Million
08. The crash of the stock market began a period known as what?
Great Depression
09. When did Henry Ford close his factories in Detroit?
1931
10. What did many European nations have to protect from a Great Depression?
Unemployment Insurance
11. How many people were unemployed by 1932? What percent of the labor force was this?
13 Million—25%
12. The total annual goods and services produced by a nation is called what?
GNP
13. What does GNP stand for?
Gross National Product
14. The GNP had declined by what percent between 1929 and 1933?
45%
15. Not only was the American farmer hurt by a severe drop in crop prices, but they also experienced which natural disaster?
Dust Bowl (drought)
16. What forced many banks to close?
Run on Money
17. Approximately how many banks foreclosed?
5,500
18. After World War I, the U.S. demanded the debts be paid of which former allies?
Britain and France
19. What did the U.S. do to make it difficult for its former allies to pay off their war debts?
High Tariffs
20. What did America’s former allies have to rely on to pay its wartime debts to the U.S.?
German reparations
21. What was the key to Germany being able to pay its reparations?
U.S. business investment
22. What happened when American investments in Germany declined?
Germany stopped reparation payments—Allies stopped debt payments
23. What is security on a loan called?
Collateral
24. What regulates the amount of money in circulation?
Federal Reserve System
25. Initially, what did the Federal Reserve do to spur economic growth?
Lowered Interest Rates
26. Worried about overspeculation, what did the Federal Reserve do in 1929 in an attempt to correct the situation?
Tight-Money Supply (Deflation)