When investors realized that the economy was slowing, they began to sell off their stocks. Most of these stocks weren’t worth the same amount as when they were bought. The effect of this was:

• The banks that gave the loans to investors to buy the stock forgave their debts, and the economy did not suffer.

• President Hoover ordered banks to close and give customers their money back.

• The stock market crashed, investors who bought stocks on credit couldn’t pay back their loans, banks closed, and people lost their savings because most banks had also invested money in the stock market.

• President Roosevelt closed all banks for four days in order to determine which banks were honest enough to reopen.

What happens during a depression?

• The country celebrates a booming economy.

• Many people find jobs and prosper.

• The economy slumps and industries do not grow.

• FDR’s New Deal fires President Hoover.

Because of the Great Depression, many people were unemployed. As a result, these people

• Waited on a new election to finally elect a president who would find a way to solve the nation’s problems.

• Waited on the President Hoover to find a way to end the Depression.

• Sold all that they had to move to the south in search of jobs.

• Could not pay their bills or debts to banks which led to failed banks and businesses.

What was the domino effect during the Great Depression?

• Hiring workers, increased demand for product and building new companies

• Hiring workers, increasing wages and low demand for products

• Laid off workers, decreasing wages and decreasing prices because there was no demand for products

• Laid off workers, increasing wages and high demand for product

What was the name given to unemployed young men and women that took the highways or rode the rails from town to town seeking work or a hand out?

• Rail Riders

• Hoboes

• Trail Jumpers

• Freedom Marchers

What was the effect of the harsh winds from the Dust Bowl?

• Farmers moved to the north to find jobs.

• African Americans moved to Harlem in the Great Migration.

• The wind blew the rich topsoil away causing dust storms and left some farmlands unusable.

• President Hoover started the New Deal.

What were the New Deal’s three major goals?

• Relief, recovery, reform

• Security, safety, stocks

• Farms, freedom, fearlessness

• Work, welfare, wealth

What New Deal program created National Parks that can still be enjoyed today?

• Tennessee Valley Authority

• Federal Deposit of Insurance (FDIC)

• Civilian Conservation Corps (CCC)

• Social Security Act

Which program was developed by FDR in order to protect money deposited into banks and help Americans regain trust in banks again?

• Credit card

• Federal Deposit of Insurance (FDIC)

• Social Security Act

• 4-Day Bank Holiday

Which New Deal program makes sure that the disabled and elderly have some income?

• Social Security Act

• Federal Deposit of Insurance (FDIC)

• Civilian Conservation Corps (CCC)

• Hooverville