The Great Depression and New Deal

President Franklin D. Roosevelt believed that declaring a bank holiday and creating the Federal Deposit Insurance Corporation (FDIC) would help the nation’s banking system by

• restoring public confidence in the banks

• reducing government regulation of banks

• restricting foreign investments

• granting tax relief to individuals

Which phrase best completes the diagram?

• Causes of the Great Depression

• Causes of the Roaring Twenties

• Economic effects of World War I

• Impact of the Treaty of Versailles

SS.912.A.5.11 Which event contributed to the conditions depicted in the photograph?

• A the prohibition of alcoholic drinks

• B President Herbert Hoover’s grant of federal money to soup kitchens

• C the refusal of France and Britain to pay war debts owed to the United States

• D a stock market crash that reduced the demand for goods and raised unemployment

SS.912.A.5.11 Which economic factor contributed most directly to the start of the Great Depression?

• a. low worker productivity

• b. high income taxes

• c. decreasing tariff rates

• d. buying stocks on margin

SS.912.A.5.11 What was a guiding principle of the New Deal economic policies?

• a. Pro-business tax breaks would solve the problems associated with urban poverty.

• b. Antitrust legislation would destroy the free market economy of the United States.

• c. Rugged individualism must be allowed to solve social inequality.

• d. Government must assume more responsibility for helping the poor.

SS.912.A.5.11 What would an examination of the American economy in the early 1930s reveal?

• A All Americans enjoyed equal access to credit.

• B High tariffs had stimulated international trade.

• C Unemployment was higher than ever before in American history.

• D Increased mass production was matched by increased consumption.

SS.912.A.5.11 Which inference can be made from this table?

• A The Supreme Court’s decisions had no effect on unemployment.

• B High unemployment did not end until the outbreak of World War II.

• C The federal government was spending too much money during New Deal.

• D Passage of the Wagner Act (1935) and other pro-labor laws greatly reduced unemployment.

SS.912.A.5.11 Which statement about President Franklin D. Roosevelt’s plans for a second term most accurately expresses the main idea of the cartoon?

• a. Congress will give President Roosevelt a free hand to lead the nation.

• b. The American people will trust Congress to control President Roosevelt.

• c. President Roosevelt will seek direction from the people.

• d. The Great Depression will no longer be a serious concern.

SS.912.A.5.11 How was this New Deal agency expected to fight the Great Depression?

• A by asking farmers to plant fewer crops to keep prices up

• B by creating voluntary codes that set prices, wages and production

• C by giving outdoor jobs, like planting trees, to young men living in camps

• D by insuring deposits in banks so that people would not lose their savings

SS.912.A.5.11 A major reason for creating the Tennessee Valley Authority (TVA) in 1933 was to

• a. build and manage a turnpike in the valley

• b. provide health care benefits for southerners

• c. encourage African Americans to settle in the valley

• d. improve economic conditions in a poor rural region