Week 7

Multiple Choice

How did the Great Depression affect American society?

• The price of agricultural goods decreased, causing an increase in demand for farm labor.

• manufacturing wages increased, causing businesses to conceded to labor union demands.

• Demand for luxury goods increased, causing overproduction in manufacturing.

• Businesses were forced to close, causing widespread unemployment.

Multiple Select

What are the phases of the boom-and-bust cycle as illustrated in the image?

• Bust

• Boom

• Recession

• Depression

Open Ended

What is a boom-and-bust cycle?

Multiple Choice

What does it mean for a bank to fail?

• The bank has no more customers asking for loans

• The bank is unable to return money to those who have given it money

• The bank has not making a profit for multiple consecutive years

Multiple Choice

What were bank failures?

• After the stock market crash, many Americans proceeded to remove their money from the bank causing many banks to close.

• During the Roaring 20s, banks made so many loans to customers that they ran out of money and had to close.

Multiple Choice

Which statement best describes how overspeculation stock market during the mid-to-late 1920s contributed to the Great Depression?

• People were unable to repay the loans used to purchase stocks.

• Government taxes on stock transactions made it difficult to repay investors.

• Financial institutions were not required to report earning to stock investors.

• Foreign countries were not required to immediately pay stockholder earnings.

Multiple Choice

What happened to businesses as prices decreased?

• They hired more workers

• They had to lay off workers

• They increased prices

• They expanded their operations

Open Ended

Why was October 29, 1929, called Black Tuesday?

Multiple Choice

How did this trend contribute to the Great Depression?

• By leading to a rise in consumer demand

• By discouraging stock market speculation

• By stabilizing unemployment and inflation rates

• By causing drops in profits and employment

Open Ended

What was the Dust Bowl and how did it affect migration patterns in the United States?

Multiple Choice

What were the main factors that contributed to the Great Depression?

• Overspeculation

• Smoot-Hawley Tariff

• Bank failures

• All of the above

Multiple Select

At the beginning of the Great Depression, President Hoover told Americans that...

• "the government will send every American $1000 to help them survive the financial crisis"

• "They shouldn't ask the government for help"

• "they should maintain their self-reliance and rugged individualism"

• "the federal government will provide food and shelter to those in need"

Open Ended

What was the purpose of the Mexican Repatriation Act?

Multiple Choice

Why did the U.S. government take this action during the Great Depression?

• Some thought people of Mexican ancestry were buying too much property.

• Some thought people of Mexican ancestry were taking jobs from U.S. workers.

• Some feared that people of Mexican ancestry would force U.S. schools to teach foreign languages.

• Some feared that people of Mexican ancestry would force their religious beliefs to become the law of the land.

Multiple Choice

What was Franklin D. Roosevelt's approach to the Great Depression compared to Hoover's?

• He ignored the problem

• He took responsibility to improve the economy

• He blamed the American people

• He focused on foreign policy

Multiple Choice

What was the purpose of fireside chats?

• To entertain the public

• To inform the public about policies

• To promote political campaigns

• To discuss personal matters

Multiple Choice

This poster was published by the Social Security Board in 1935.

How did the new program described in the poster affect the role of the federal government?

• It provided the federal government with a role in administering a

  retirement fund for workers.

• It limited the federal government’s power to enforce minimum

  wage requirements.

• It provided the federal government with a role in managing

  workers’ bank accounts.

• It limited the federal government’s power to assist workers in

  manufacturing plants.

Multiple Choice

What was the purpose of the Bank Holiday declared by Roosevelt during the Great Depression?

• To allow all banks to reopen

• To restore confidence in banks

• To provide loans to farmers

• To increase money supply

Open Ended

How did the Federal Emergency Relief Act help Americans?

Multiple Choice

This political cartoon to the right illustrates one way in which the New Deal tried to solve the problems created by the Great Depression. What was is being suggested to solve these problems?

• To provide federal aid to the economy despite growing costs

• Reduce taxes on big businesses in hopes it would stimulate job growth

• Lower federal spending to maintain a balanced budget

• Decrease foreign competition in the economy

Open Ended

Why did Roosevelt want to put money in consumers hands?

Multiple Choice

How did the legislation excerpted here affect the relationship between the US government and its citizens?

• It allowed the government to tax investment income.

• It allowed people to have more direct input in government decisions.

• It made most people distrust the power of the government.

• It made the government more responsible for the people’s economic welfare.

Multiple Choice

Which of the following is a monetary policy action a central bank would implement to control inflation?

• Lower the required reserve ratio

• Lower the discount rate

• Target a lower overnight interbank lending rate

• Sell government bonds to the public

Open Ended

What does the Federal Reserve do to prevent an economic depression?

Multiple Choice

What is the significance of the gold standard in the history of currency?

• It was used to back the value of printed money

• It replaced paper money

• It was the first form of currency

• It is still used today