the depression

• What event marked the end of the Roaring Twenties?

  The Wall Street Crash
• What was the significance of the Wall Street Crash in October 1929?

  It marked the beginning of an economic depression
• How many shares were sold on the New York Stock Exchange on 24 October 1929?

  13 million shares
• What is referred to as 'Black Thursday'?

  The day 13 million shares were sold
• How much value did American shares lose during the Wall Street Crash?

  87%
• Why did falling share prices lead to a Depression?

  People couldn't repay loans, causing bank failures
• How many banks closed in 1929 due to the crash?

  More than 600 banks
• What happened to people's life savings during the crash?

  They lost everything when banks failed
• How did the crash affect bank lending practices?

  Banks became reluctant to lend money
• What was one consequence of high unemployment during the Depression?

  People had less money to spend
• What is a depression in economic terms?

  An economic collapse with high unemployment
• What was the demand for luxury goods during the boom?

  There was huge demand for luxury goods
• What led to overproduction by 1929?

  Everyone who could afford luxury goods bought them
• How did the stock market crash affect share prices?

  Share prices began to fall dramatically
• What are the two main functions of banks?

  Savings and loans
• How do banks make a profit?

  By charging interest on loans
• What happened to banks after the Crash?

  Banks could no longer make loans
• Who challenged Herbert Hoover in the 1932 presidential election?

  Franklin Delano Roosevelt
• What did Roosevelt promise during his campaign?

  To help America get out of the Depression
• What was Roosevelt's nickname?

  FDR
• What was the public's reaction to Hoover's methods?

  They were unimpressed with his methods
• What was Hoover's approach to the Depression initially?

  He took a laissez-faire approach
• What was the New Deal?

  A change from Hoover's laissez-faire approach
• What were the 'three Rs' of the New Deal?

  Relief, Recovery, Reform
• What were the effects of the Wall Street Crash on American society?

  • Loss of life savings due to bank failures
  • High unemployment rates
  • Difficulty in borrowing money
  • Panic and rush to withdraw funds
• What were the key components of Roosevelt's New Deal?

  • Relief for the unemployed and homeless
  • Recovery of the economy
  • Reform of financial systems