Great Depression

Which of the following was a major cause of the Great Depression?

• overproduction and underconsumption
• a decrease in the supply of consumer goods
• an increase in demand for imported products
• an increase in the price of wheat on the world market

What was Hoover's belief about the governments involvement in businesses and individuals? 

• The government should help the people
• The government should avoid direct involvement
• The government should provide solutions to the people
• The government should shut down

How did "bank runs" impact the American people during the Great Depression?

• Banks eventually ran out of money to loan, and people's life savings were gone.
• Banks made loans throughout the Great Depression, helping people pays bills until they could find work.
• Banks were able to people's deposits safe, but they could not loan out any more money.
• Banks were not at all involved in the Great Depression because people did not use them.

A major result of the New Deal was that it

• eliminated poverty in the US
• extended the merit system in the civil service
• destroyed the private enterprise system
• greatly increased the size and power of the Federal Government

FDR addressed the American public in weekly broadcasts known as:

• FDR Hour
• Hangin' With Franklin
• Fireside Chats
• Around the Fire

What was the main reason for the emergence of “Hoovervilles” like the one shown in the photograph?

• Many Americans had lost jobs during the Great Depression.
• Thousands of homes had been destroyed by the effects of the Dust Bowl.
• Housing projects could not keep up with the demand for homes needed by the poor.
• Preparations for World War I had created a shortage of building materials.

During the 1930s, poor land management and severe drought conditions across parts of the Midwest resulted in the

• formation of the United States Department of Agriculture
• creation of wheat surpluses
• growth of the Populist movement
• development of Dust Bowl conditions on the Great Plains

A major difference between the philosophies of President Herbert Hoover and President Franklin D. Roosevelt in responding to the Great Depression is that Roosevelt

• wanted to rely on private charities to provide assistance
• stressed the need for individual rugged individualism
• supported direct relief to people out of work
• thought the government should not be involved in economic reform

What was a guiding principle of the New Deal economic policies?

• Pro-business tax breaks would solve the problems associated with urban poverty.
• Antitrust legislation would destroy the free market economy of the United States.
• Rugged individualism must be allowed to solve social inequality.
• Government must assume more responsibility for helping the poor.

As part of the New Deal, the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) were created to

• allow for a quick recovery of stock prices
• provide direct loans to businesses
• protect individual investors from stock fraud and bank failure
• allow banks and companies to invest in the stock market