The Availability of Credit and Hire Purchase

What was the role of credit in America in the 1920s?

Credit became more available in the 1920s. This meant that banks and businesses were more prepared to lend people money to buy the goods that they wanted.

What was hire purchase as a form of credit?

Hire purchase meant that people could buy goods without paying in full straight away. Instead, they could take the item home after paying a deposit, and pay the rest of the cost in instalments.

How was credit used for 'buying on the margin'?

'Buying on the margin' was when the banks gave people credit to use to buy shares with just a 10% deposit, known as 'the margin'. They were expected to pay this back when they had sold their shares at a profit.

What was the effect of hire purchase and credit in 1920s America?

Hire purchase and credit increased demand and the sale of goods, as it made them more affordable and available to ordinary people.