US B Unit 2

Which of the following factors was most significant in contributing to the onset of the Great Depression in the United States?

• Declining agricultural prosperity

• Increasing reliance on foreign imports

• An inadequately skilled workforce

• Vast military expenditure during World War I

Which of the following were Presidents during the Great Depression Era?

• Harding and Coolidge

• Hoover and Harding

• Hoover and Roosevelt

• Coolidge and Roosevelt

If stock prices dropped, brokers could force investors to repay their loans if the investors were

• Installment buying

• Okies

• Buying on margin

• Members of a cooperative

On October 29, 1929, investors responded to concerns about the economy by

• Selling off their stocks

• Buying up more stocks

• Appealing to the Federal Reserve to halt stock sales

• Emptying their bank accounts

How did American’s behavior in regard to the stock market change in the early and mid 1920s?

• Investing in the stock market was limited to the wealthiest five percent of all Americans

• As stock prices rose and credit eased, even middle class Americans became investors

• By 1925 the public had lost confidence in the government and its pro-business policies

• The popularity of buying land far overshadowed other forms of investing.

“Black Tuesday” referred to the

• Collapse of the stock market

• Day voters re-elected Herbert Hoover

• Worst dust storm of 1931

• Day the Federal Reserve made it more difficult for brokers to offer margin loans

According to what you have learned about Hoover, what were President Hoover’s core beliefs about the Great Depression?

• The Reconstruction Finance Corporation program would help individuals but hurt banks

• Businesses and individuals (producers and consumers) should be able to cure the Depression without direct government aid

• Individuals need direct government aid, but businesses should be able to form associations and take care of themselves

• The federal government had a responsibility to give aid to individuals and businesses during hard economic times like the Great Depression

President Hoover downplayed the effects of the crash because

• Margin buyers were not hurt

• He believed the economy would soon recover

• Consumers continued buying stocks at a brisk pace

• The crash had little effect on economies overseas

In the aftermath of the crash, industrialized nations around the world took measures to

• Decrease tariffs, making it easier to import goods from abroad more cheaply

• Increase wages by a total of $4 billion

• Protect themselves by passing high tariffs

• Maintain the current size of their workforce

People who hopped trains to look for work were known as

• Okies

• Hoovervilles

• Hoboes

• Migrants