Download Chapter 30 Reading Outline

Chapter 30
American History
I.
The Causes of the Great Depression
a. Define: Black Tuesday
b. Define: Stock Market Crash
c. What is the purpose of the stock market?
i. Define: bull market
ii. Why were most people investing in the stock market at the time?
iii. Define: broker
iv. Define: buying on margin
1. Why is this significant?
2. Why were most people buying stock at this time?
v. Define: bear market
1. How much money was lost by investors during the bear market?
d. How did the stock market cause banks to close?
i. Define: Interest
ii. Define: bank runs
1. How many banks failed in 1931 and 1932?
2. How many were out of business by 1933?
Orzechowski/USH – Chapter 30 Outline
1
e. Briefly describe each of the following causes for the crippling of the economy at the
time.
i. Overproduction:
ii. Widening wealth gap leads to rising debt:
iii. Underconsumption:
1. What three areas were affected by this cause? (briefly describe each)
a.
b.
c.
f.
Briefly describe how the federal government made the situation worse.
i. Define: Federal Reserve System
ii. Define: discount rate
iii. Define: Hawley-Smoot Tariff Act
Orzechowski/USH – Chapter 30 Outline
2