The Great Depression

Why did the drop in stock prices in October 1929 ultimately lead the stock market to crash?

• Business leaders began selling off shares in their own companies

• The stock market shut down for one weak, leading furious investors to cash in their stocks

• Investors who feared that they would fail to pay off loans panicked, selling off all their stock

• Banks refused to issue credit to middle-class investors, causing demand for stocks to plummet

"Buying on margin" means buying stocks

• during a bear market in hopes of selling at a higher price

• directly at the stock market, instead of through a stockbroker

• during a bull market at an inflated price

• with borrowed money, which must be repaid with interest

The banking system collapsed as an effect of the stock market crash because banks

• ran out of cash to pay all the investors who needed ready money after the crash

• were already in a crisis, and the stock market crash made them run out of money

• had to pay all the business insured against bankruptcy

• had lent huge sums to foreign banks that could not repay the loans after the crash

How did the stock market crash cause a business crisis?

• Business that had lent money to foreign countries were not paid back

• Business were forced to cut back production but could not fire workers

• Business lost their savings in failed banks and had to close or cut back

• Business could not afford supplies but had no workers to make the goods

What helped Franklin Roosevelt beat Herbert Hoover in the 1932 election?

• As governor of New York Roosevelt had taken active steps to provide aid for citizens.

• As a presidential candidate Roosevelt promised to prosecute those responsible for the stock market crash

• Roosevelt was dedicated to women's liberation

• Roosevelt was a more well-known candidate

What was the outcome of the election of 1932?

• Roosevelt won by a small margin and the balance of both houses of Congress stayed the same.

• Roosevelt won after Hoover, having said that his prospect of winning were dark forfeited the race.

• Roosevelt won by a landslide and Democrats won strong majorities in both houses of Congress.

• Roosevelt won in the electoral college but Hoover won the majority of popular votes.

The Tennessee Valley Authority was a government project to

• build dams and generators, bringing electricity and jobs to poor communities in the Tennessee river Valley.

• put more than 4 million Americans to work building roads and airports in the poor and underdeveloped Tennessee River Valley.

• help poor farmers in the Tennessee River Valley refinanced their mortgages and keep their farms.

• eliminate unfair business practices and competition between powerful mining companies in the Tennessee River Valley.

Which New Deal program marked the first time the federal government took direct responsibility for its citizens' economic well being?

• The Federal Deposit Insurance Corporation

• The Emergency Banking Relief Act

• The Farm Credit Act

• The Social Security Act

The National Labor Relations Act of 1933

• allowed workers to joining labor unions and take part in collective bargaining, and established the National Relations Board to oversee union activities

• allowed strikes only in times of non-emergency, and established the National Labor Relations Board to mediate between workers and owners during strikes.

• allowed women to take positions of power in unions, and established the National Labor Relations Board to oversee union activities.

• allowed minority workers to join labor unions, and established the National Labor Relations Board to stop discrimination in unions.

Which program of the Second New Deal did Eleanor Roosevelt convince President Roosevelt to create?

• National Youth Administration (NYA)

• National Industrial Recovery Act (NIRA)

• Works Progress Administration (WPA)

• Civil Works Administration (CWA)