Download The Roaring 20`s and Great Depression

The Roaring 20's and
Great Depression
Name__________________________________________
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Commodity Money (Slide 6)
Representative Money (Slide 8)
1. ________________ money can
be used as money but also has
value in ____________.
1. Something that is not in the
_____________ form of currency
, but represents the intent to
____________ money.
2. Liberty _________, Savings
Bonds, ___________ are
examples
2. An example of commodity
money is ____________.
What is MONEY? (Slide 3-4)
1. Money is a medium of __________________, a unit of account, and a
store of ___________________.
2. As a unit of account, money is a way to______________ the value of
________________ and ___________________.
Fiat Money (Slide 9-11)
1. ___________ money is our money today.
2. ___________ is money that people can easily use to pay for __________ and services.
3. ___________ includes savings accounts and mutual funds.
4. These must be __________________ to _____________ before they are used.
5.
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Inflation
Example: As inflation
rises, every dollar will
buy a smaller
percentage of a good.
For example, if the
inflation rate is 2%,
then a ____ pack of
gum will cost ________
in a year.
The rate at which
the general level of
prices for goods
and services is
__________, and,
subsequently,
purchasing power
(___________ of
your money) falls.
(Slide 13)
Why is this a problem for our
economy and people?
1. What is interest? (Slide 14) ( When does interest benefit a person)?
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Interest (Slide 15)
Principal (Slide 15)
The interest is the money a
customer pays _________
____________principal for the
opportunity to borrow money.
The principal is the ________
___________borrowed from a
bank for a car or home.
Create your own example of
interest:
Create your own example of
Principal
THE TOTAL COST OF THE PRODUCT
2. Turn and Talk: What are some things that most people cannot pay cash for and have to borrow
money in order to purchase the product?
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Credit
Credit is a measure of how likely you are to ___________ something back. (Slide 16)
Example: Credit cards are used to buy now and pay later. Don't pay in time you need
to pay interest on the money charged.
So, how do banks assess if a person has good credit?
(Slide 18)
Character—_________you
repay the debt?
Capital—what if you don’t
_________the ____________?
Capacity—_______you
__________ the debt?
From your credit history, does
it look like you possess the
honesty and reliability to pay
credit debts?
Do you have any valuable assets
such as real estate, savings, or
investments that could be used to
repay credit debts if income is
unavailable?
Have you been working
regularly in an occupation
that is likely to provide
enough income to support
your credit use?
What If a person doesn't pay back a loan or loans?
DEFAULT- leads to bad ___________ and higher ___________ rates in the
future financial institutions lose trust in the person. (Slide 19)
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3. What is the difference between a debit card and a credit card? (Slide 20)
Debit cards are different. They are tied to a personal _________ account and
_________ money from it. No ________________ involved.
Turn and Talk: Discuss this with your group and write up an example of this:
4. What is the difference between saving and investing? ( Slide 22)
Saving:
Investing:
Different types of Investing
STOCKS YOU OWN ( Slide 24)
When a person buys stock, he/she is
buying partial ____________ in a
corporation. If the corporation prospers,
the investor prospers makes___________
on the investment.
If the corporation fails, the investor can
___________ his investment. (Money)
Buying on Margin: ____________ money
to invest money. Very __________
because if you lose, you owe someone else
money that you may not have.
BONDS YOU LOAN (Slide 24)
When a person buys a bond,
he or she is loaning money to
a corporation or government
and in return they receive
interest for the money they
invested.
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5. How do you profit or make money from stocks? (Slide 26)
 Dividends:
 Capital Gains:
6. Turn and Talk: Why is investing in stocks Risky? What is the Risk?
7. What is a Mutual Fund? How are they different from stocks? ( Slide 31)
8. How does an investor reduce the amount of risk that he/she assumes? (Slide
32)
9. In your own words describe what the business cycle looks like to you. After
talk with your group how can you explain the business cycle in a few words.
(Slides 35-37)
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The Law of Demand (Slide 38)
The law of demand states that consumers buy _____________ of a
good when its price __________________.
Conversely, consumers buy ________________ of a good when its price
____________________.
The Law of Supply (Slide 43)
The Law of Supply is the tendency of suppliers to offer __________ of a
good at _____________ prices.
The Law of Supply is the _________________ of the Law of Demand.
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Supply and Demand put together:
What does this mean to me?
Disequilibrium (Slide 50)
Equilibrium: (Slide 48)
______________ occurs
when the quantity
demanded _________ the
quantity ____________.
A market is at disequilibrium when the
quantity ________________ does not equal
the quantity ________________.
Versus
A market is ___________
at equilibrium.
If quantity demanded is _____________ than
quantity supplied, excess
_____________occurs.
If quantity __________________ is greater
than quantity demanded, excess supply
occurs.
Disequilibrium Causes
Excess Demand (Slide 51)
Excess Supply (Slide 52)
Excess demand occurs when the actual
price is lower than the equilibrium price.
Excess supply occurs when quantity supplied is greater
than quantity demanded.
We fix this by ____________ prices.
We fix this by ___________________ prices.
10. Think, Pair, Share: Think about the products that you use every day. How
does supply and demand effect these products?
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The Roaring 20's
Why was this decade named the Roaring 20's? (Slide 54)
The nation's growth of _________________________.
People go out and purchase new__________________________ with their money.
This was time of _________________ living standards for most Americans.
11. What technological advance had the most impact on American life in the 1920's?
What helped produced these cars more quicker? (Slide 54)
12. What happens to the economy as a result of the car? How does each industry
benefit? Would you consider this a good cycle for the economy? (Slide 61)
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Installment Buying:
National Advertising
Buy now.... Pay
__________
Done
through___________
Credit!
1920's economy and
technological advances also
encourages..... (Slide 62)
Petroleum and
Electricity become more
widely available.
This leads to the new
inventions of the
_____________ cleaner,
sewing
______________,
toasters and fans.
The Air Age
Pan American Airways
founded. 1st
_________________
airplane.
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Changes in Society in
the 1920's
Women (Slide 65)
They were eager to try ____________ things. (Known as flappers) Looked for the
________________ to go to college. Men and Women viewed as an equal___________________.
Women get the right to _____________________19th amendment.
Youth (Slide 66)
Rebelled against ____________ of the past, wanted fun and freedom,
stayed in school longer.
African Americans (Slide 66)
Moved to the North and West out of the Southern part of the U.S. to find
better ________________ and _______________________.
12. What was Prohibition? (Slide 67)
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13. What were the intended effects of prohibition? (Slide 67)
14. What actually happened during prohibition? (Slide 67)
Mass Media
Leisure Time - Time to do
_______________ such as going to
museums, baseball games, going
to watch shows by jazz artists as
well as other entertainment.
____________________
that reach a large
audience.
_______________
boomed
Moviesmore popular leisure time
activities was going out to
watch ___________. Took
people into the glamour of
Hollywood.
1920's Pop
Culture
Other Pop Culture
Music, Dance (Charleston),
Fashion, and Slang Terms such
as "ritzy" and "scram"
Slides 69-73
Sports
All sports in the 20’s baseball, hockey, football, boxing, golf,
basketball, and tennis enjoyed rising
_____________________.
Harlem Renaissance
Harlem Renaissance
is known as a burst
of African American
_____________
activity and is best
known for its jazz
music, art, and
writing
Jazz Age!
Sports figures became ______________ to many Americans
and captured their imagination because these sports figures
restored Americans __________ of doing better in their own
____________.
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The Start of The Great
Depression (Slide 76-78)
1. ___________ piled up in
warehouses as __________
slowed for them.
2. Since many Americans
could not ________
many extras right away,
they bought on
____________.
4. This caused
Americans to go
farther into
___________.
7. Americans feared
investments/stocks
would drop
__________ what
they paid for them
or borrowed and
many
____________
them off.
3. When the __________
came Americans did not have
the money and had to pay
small payments with
_____________.
5. As
Americans
realized they
could
not_______
they stopped
___________.
8. This massive sell
off caused
___________ and
October 29, 1929
will be
remembered as a
day when the
stock market
crashed in a great
wave of selling.
6. Buying stocks
on Margin____________
to buy stocks
and did not
have it to pay
back.
9. Known as the start of
_______________ this
economic downturn
lasted well into the
1930’s and lasted longer
than any other
economic recession in
United States History.
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The Cycle of Disaster
Businesses
________
production
_________
for
Workers ______
goods fell.
and lay offs.
from _____ cuts
People had
_________ or no
money to spend.
15. How was the "Cycle of Disaster" different from what we learned about the in the
car industry in the 1920's?
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FDR gets voted into office and proposes that the government gets
involved to help the Depression by spending Government money to
create jobs and protect people. This was called the New Deal. Some of
the New Deal Programs that still effect us today include:
National Pension
System
Social Security
The Social Security system
pays out ____________. It is
funded through _________
on employers and
employees.
(Slide 83)
Protection for
Savings
(Slide 83)
Fair Labor
Standards Act
(Slide 85)
The FDIC ___________ bank
deposits of up to $250,000 It
would replace the
__________ of individuals if
the banks close.
Set a ___________ wage at
40 cents an hour by 1945
but did not include
everyone. (Retail was
excluded). An Amendment
passed in 1961 _____people
in the retail sector.
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16. Think, Pair, Share: After discussion and viewing the pictures of the Dust
Bowl, what are your thoughts on it? (Slides 87-97)
17. What propelled to United States out of the Great Depression? (Slide 98)
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