Unit 8­ Ch. 30: The Causes of the Great Depression Ch. 30 Vocabulary­ 1)
Black Tuesday
­
October 29, 1929; the worst day of plunging stock market prices during the stock market crash that helped initiate the
Great Depression 2)
Bear Market­ a period in which stock prices are steadily decreasing 3)
Overproduction­ a situation in which more goods are being produced than people can afford to buy 4)
Hawley­ Smoot Tariff­ a law passed by Congress in
1930 to raise the tariffs on imported goods in order to protect U.S. businesses and farmers 5)
Bull Market­ a period in which stock prices are steadily rising 6)
Interest­ the charge made by a bank for the use of money deposited in an account 7)
Underconsumption­ a situation in which people are purchasing fewer goods than the economy is producing 8)
Speculation­ t he making of risky investments in the hope of earning large profits 9)
Buying on Margin­ buying stock by paying a percentage of a stock's price and borrowing the rest of the money from a broker, allowing one to make greater profits if the stock does well

10)
Bank Runs­ a financial crisis in which a large number of customers simultaneously attempt to withdraw their money from a bank out of fear that the bank will close 11)
Federal Reserve System­ the central banking authority of the United