Money money money TTO

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• Leerjaar 3

Money Money Money

Hyperinflation in Germany

Wallstreet Crash in the United States

Treaty of Versailles

Germany had to take the blame and got the following sanctions: 

1. Reconstruction payment of 132 billion Mark to Fr & Be
2.  loose 15% of territory
3.  army of max. 100.000 soldiers

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What was the effect of printing more money after the strike in 1922?

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Why did the French and the Belgians invade the Ruhr Valley?

Occupation of the Ruhr valley

Germany could not pay France and Belgium

Effect: France occupied the Ruhr valley (lots of industry)

Effect: Germany laborers went on strike

Effect: German government continued paying laborers, but no money so: printing more money!!! 

Effect: HYPERINFLATION! 

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Name an effect of the hyperinflation in Germany?

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Explain what hyperinflation is

In the meanwhile in the US (1929)

Stock exchange (aandeelhandel) is very popular, people become rich (or they thought so) 

People bought luxurous products with loaned money

How long will this last?

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Why did people massively sell their stock on that day?

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On which day did the stock exchange market complete collapse?

1. Black Friday
2. Black Thursday
3. Pink Monday
4. Good Friday

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Why did Americans loan so much money?

Wallstreet Crash, 1929

Collapse of stock exchange is called Wallstreet Crash

Effect: stocks lose their value completely 

Effect: companies want their money back from buyers

Effect: people are massively getting their money from the bank

Effect: Banks don't have money because they lend it to companies

Wallstreet Crash, 1929

Effect: Banks want money back from companies

Effect: companies have to fire their workers to save money 

Effect: people have no money, no job but massive depts 

Ultimate effect: Economical World Crisis!