Hoover's Response to the Depression - 9.3

How did President Hoover initially respond to the stock market crash?

• by extending loans to farmers and families about to lose their homes

• by shutting down the stock market and setting out a plan for recovery

• by immediately addressing Congress in order to seek relief for families

• by being optimistic and downplaying the severity of the situation

What principle did President Hoover originally cling to as the solution to the nation's economic troubles?

• social security

• government intervention

• rugged individualism

• modified socialism

What was the purpose of the series of conferences President Hoover conducted in 1930 in response to the economy?

• to inform the American public about how the government was handling the crisis

• to convince business leaders to retain workers and maintain wages

• to force companies to rehire the workers they had laid off

• to discuss social improvement projects with members of Congress

What are "public works"?

• government-funded building projects

• acts of charity by private organizations

• programs to get companies to start hiring

• loans to banks to prop them up during the crisis

What was the purpose of the National Credit Corporation?

• to begin borrowing money to spend in a deficit

• to lend money to companies to stimulate hiring

• to increase the amount of currency in circulation

• to extend credit to people in order to secure their homes

What was a flaw of the Reconstruction Finance Corporation, created by President Hoover in 1932?

• It failed to foresee a second stock market crash that wiped out all of the progress it had made up until then.

• It did not regulate how businesses could spend money.

• It spent beyond its means and wound up borrowing money from foreign entities.

• It was too cautious and did not meet the demands of the failing economy.

How did the government respond to the call for direct relief to families?

• It offered families federal loans subsidized by the government.

• It passed the Emergency Relief and Construction Act.

• It told the states to continue spending their own money.

• It created social security and welfare.

What were "hunger marches"?

• protests organized by the Communist Party to demand higher taxes for the wealthy in order to feed the poor.

• lines at soup kitchens and relief centers where people went to get free meals.

• runs on banks by customers trying to recoup their losses.

• the deliberate destruction of food by farmers in order to keep prices up.

What was the Bonus Army?

• a group of communist and socialist agitators who attacked the White House

• a collection of shantytown residents across the U.S. who helped each other find government jobs

• a group of 15,000 veterans who squatted in Washington, D.C., demanding early bonuses

• a group of college students who presented options on recovery to the president

What happened when Hoover ordered the removal of the Bonus Army?

• The Bonus Army protested and attacked local stores and businesses.

• Veterans were eventually chased from the Capitol by 700 soldiers.

• Police ignored him and allowed the army to remain.

• General MacArthur joined the army to express his solidarity.