APUSH: Ch. 24 The Great Depression Reading Quiz

Which economic factor was a major cause of the Great Depression?

• over-speculation of the stock market artificially raising prices

• Increase in business taxes

• Reduction of tariffs on foreign imports

• Creation of the Federal Reserve System

Which of these best describes the Great Depression?

• A time of economic prosperity and lack of government regulations

• A decade of recovering from the hardships of World War I

• A decade where foreign policy decision make the U.S. a world power

• A time of high unemployment, homelessness, and business failures

Which of these best describes the causes of the Dust Bowl?

• Advances in new farming technology and mass production of farm goods

• Poor agricultural practices and long periods of drought

• tropical wind storms and dust from the African Sahara

• Mass migrations westward using auotmobiles

How did the Federal Reserve and the banking system contribute to the outbreak of the Great Depression?

• Regulations on businesses were too tight and stifled growth

• Banks imposed transaction fees on withdrawals causing debt to increase

• New insurance programs lead to massive fraud issues

• Interest rates were too high and too many Americans had large amounts of credit debt

How did bank runs contribute to the outbreak of the Great Depression?

• Interest rates on credit caused a spike in debt causing the housing market to collapse

• Banks failed and closed costing people their savings and faith in the banking system

• Injuries caused by riots lead to many to lose their jobs

• The Federal Reserve did not stock banks with enough gold to handle bank runs

What was the purpose of Herbert Hoover's Reconstruction Finance Corporation?

• To create new jobs with infrastructure projects for Americans

• To insure future bank deposits to restore faith in the banking system

• To create government agencies to monitor the economy

• To give loans to banks and businesses to restart the economy

How did the Hawley-Smoot Tariff make the Great Depression worse?

• It decreased the price of goods from other countries

• It slowed down international trade when business needed trade

• It caused unregulated banks to fail

• It triggered panics causing future bank runs

The stock market crashed in the year _______________.

• 1909

• 1919

• 1929

• 1939

Which of the following is NOT a likely causes of the Great Depression?

Select ALL that apply

• Companies borrowed enormous amounts of money.

• Many Americans could not afford to buy goods.

• Foreign buyers increased demand for American products.

• Too many products were available for sale.

This natural disaster served to worsen the effects of the Great Depression on Farmers in the Midwest 

• Tornados
• Dust Bowl
• Black Tuesday 
• Hurricanes