Economic Developments: Causes of the Wall Street Crash Flashcards
(25 cards)
How much money did all USA banks have in reserve in 1929?
$200 million
How much money had all USA banks given out as loans in 1929?
$8 billion
What percentage of the public bought things on credit?
80%
How many banks were there in the USA in the 1920s?
30,000 banks
In what year were interest rates lowered from 4% to 3.5%?
Nineteen Twenty-Seven
What percentage did the American GDP go up by a year on average in the 1920s?
2% a year
What percentage increase in value did the stock market experience from 1925 to 1929?
300% increase
What was the stock market valued at by 1929?
$90 billion
What fraction of Americans engaged in the Stock Market?
1/5
How much money was lost in the stock market on October 23rd 1929?
$4 billion
How much money was lost in the stock market on October 24th 1929?
$9 billion
How much money had been lost in the stock market by November 1929?
$25 billion
How much money was lost in savings due to the Wall Street Crash?
$140 billion
By what month and year had the stock market recovered 20% of its value?
April 1930
What approach did Harding, Coolidge, and Hoover by 1929 have on the USA?
Laissez-faire approach
Name a highest rate income tax cut and the year it was passed which shows a laissez-faire attitude
Highest rate of income tax put down to 25%. It was passed in 1924
Name a protective tariff and the year it was passed
Fordney-McCumber Tariff, 1922
Who was the British Chancellor of the Exchequer in 1925?
Winston Churchill
What did Churchill decide to do for Britain in 1925?
Put them back on the Gold Standard
What was the result for the dollar of Britain going back on the gold standard?
It overvalued the dollar
What was fueled with the overvaluation of the dollar?
The speculative bubble
Why was there a loss of confidence in the stock market?
Many wealthy people started to sell their shares
What did one cigarette company experience with their individual share value after the Wall Street Crash?
Their share value went from $100 per share down to $4 per share
How many banks failed a year in the 1920s?
500 banks a year
