American History Chapter 18 Quiz

The National Credit Corporation tried to rescue troubled banks by allowing them to

• continue offering direct relief to impoverished families.

• finance public works projects.

• continue lending money in their communities.

• restructure how they lent money to the public.

Manufacturing output per person-hour rose 32 percent in the 1920s, but the average worker’s wage increased only 8 percent, which meant that

• investment in the stock market led to overproduction.

• most Americans did not earn enough to buy the goods they helped produce.

• many goods produced by American industry were sold in foreign markets.

• speculators were eager to purchase stocks in American companies.

A long period of rising stock prices is known as a

• foreclosure.

• margin call.

• bull market.

• bank run.

The bull market of the 1920s lasted only as long as

• investors continued putting new money into the market.

• banks continued to invest in stocks.

• stockbrokers continued to make loans to investors.

• the federal reserve continued to lower interest rates.

One reason that the stock market crash led to the Great Depression was that in 1929, the top 5 percent of all American households earned 30 percent of the nation’s income, an example of

• overproduction.

• a bull market.

• a recession.

• an uneven distribution of income.

In addition to the stock market crash of 1929, the economy was shaken by a slowdown in

• tariff rates.

• farm production.

• mortgages.

• retail sales.

Before the late 1920s, stock prices

• had little to do with the economy.

• did not change much.

• generally reflected the stocks’ true value.

• were too high for most people to afford.

As stock prices declined in 1929, the Hawley-Smoot Tariff led to

• the growth of U.S. industry.

• a decline in U.S. exports.

• less competition for U.S. businesses.

• an increase in U.S. imports.

What portion of the U.S. workforce was unemployed by 1933?

• 15-20%

• roughly 25%

• about 10%

• slightly less than 40%

During the Great Depression, many farmers who were already under pressure from debt and falling prices were devastated by

• homelessness and “Hoovervilles.”

• unemployment and bank closures.

• migration and repatriation.

• drought and the “Dust Bowl.”