THE ROARING 20S 1920 1929
1920S AMERICAN CULTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Buying on credit allows people to purchase items, interest-free, and pay them back with no deadline
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Buying on credit means saving a lot of cash and purchasing items up front, all money down
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Buying on credit means using someone else’s savings and then paying them back later
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Buying on credit allowed Americans to “buy now, pay later, “ and many people went into heavy debts as a result.
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Detailed explanation-1: -The expansion of credit in the 1920s allowed for the sale of more consumer goods and put automobiles within reach of average Americans. Now individuals who could not afford to purchase a car at full price could pay for that car over time–with interest, of course!
Detailed explanation-2: -Installment credit soared during the 1920s. Banks offered the country’s first home mortgages. Manufacturers of everything–from cars to irons–allowed consumers to pay “on time.” About 60 percent of all furniture and 75 percent of all radios were purchased on installment plans.
Detailed explanation-3: -As consumers bought more on the installment plan, the debt forced some to reduce their other purchases. As sales slowed, manufacturers cut production and laid off employees. Jobless workers had to cut back purchases even more, causing business activity to spiral downward.
Detailed explanation-4: -Until the 1920s, Americans had to save their money to buy expensive goods. However, stores developed a way for people to make expensive purchases without having to save their money first. This was called consumer credit.