Professional Documents
Culture Documents
__________________________
Name:
Bank Closures
For some banks, the losses they suffered forced them to ___________
if a bank collapsed, customers lost their savings b/c the govt did not
_________________________________
The bank failures in 1929 & 1930 triggered a crisis of __________________ in the banking
system.
people began to make runs on the nations banks, causing the banks to collapse
bank run - ___________________________________________________________________, usually for
fear the bank is going to collapse
Causes: Cover Production
More efficient machinery increased the production capacity of both factories &
______________.
Most Americans did not earn enough pay to buy all of the goods they helped produce.
1929, the top 5% of all American households earned _______% of the nations income.
2/3 of average families earned less than $2,500 a year, leaving them little
_______________________________.
Causes: Installment Plans
Americans bought high-cost items, such as ______________________________, on the
installment plan, under which they would make a small down payment & pay the rest in
____________________________.
When people paid off their debts they ___________ other purchases.
This low consumption then led manufacturers to cut production &
_______________________________.
The slowdown in retail manufacturing widely impacted the nations ________________.
Causes: Interest Rates
The Federal Reserve Board (_____________) kept its rates very low throughout the 1920s. By
keeping rates low:
it encouraged member banks to make___________ loans.
its low interest rates led business leaders to think the economy was still
__________________.
during the Depression, the Fed raised interest rates, _________________ credit- the
The Reconstruction Finance Corporation marked the first time the federal government had
established a federal agency to stimulate the economy during __________________.
It was the image of the Bonus Marchers and lingering Depression, however that shaped
the _________________________ of President Hoover.