The Great Depression Review

Which of the following was not a cause of the Great Depression?

• Excessive American loans to European countries

• Uneven distribution of wealth

• Installment buying

• Purchasing of stocks "on margin"

Answer explanation

The Great Depression was caused by a combination of factors, including the stock market crash of 1929, the failure of banks, overproduction of goods, and the unequal distribution of wealth.

What was the initial cause of the Great Depression, as indicated by the Dow Jones Industrial Average?

• The stock market crash of 1929

• The failure of banks

• The Dust Bowl and agricultural depression

• The increase in protective tariffs

Answer explanation

The initial cause of the Great Depression, as indicated by the Dow Jones Industrial Average, was a sharp decline in stock prices that began in late October 1929. This decline was caused by a combination of factors, including over-speculation in the stock market, a contraction in the money supply, and a decrease in consumer spending. The Dow Jones Industrial Average, which tracks the performance of 30 large industrial companies, fell from a peak of 381.17 on September 3, 1929 to a low of 41.22 on July 8, 1932. This represented a decline of nearly 89%.

Settlements of shacks found on the outskirts of many Amercian cities beginning in the early 1930's

Answer explanation

The shacks found on the outskirts of many American cities beginning in the early 1930's were part of a phenomenon known as "Hoovervilles." Named after President Herbert Hoover, who was in office during the Great Depression, Hoovervilles were makeshift settlements of shacks and tents built by homeless people who had been displaced by the economic crisis. The shacks were often made of scrap wood, cardboard, and other materials, and were often located near rivers, railroad tracks, and other areas where people could find shelter. The Hoovervilles were a stark reminder of the poverty and desperation of the Great Depression, and were a symbol of the failure of the government to provide adequate relief to those affected by the economic crisis.

Name given in the 1930's to regions of Oklahoma, Kansas, etc. where severe drought and poor farming practices caused massive dust storms.

Answer explanation

The Dust Bowl was a period of severe dust storms that occurred in the 1930s in the Great Plains region of the United States, primarily in the states of Oklahoma, Kansas, Colorado, New Mexico, and Texas. The Dust Bowl was caused by a combination of drought, over-farming, and poor farming practices. The drought caused the topsoil to become dry and loose, and the wind blew the topsoil away in massive dust storms. These dust storms caused extensive damage to crops, livestock, and people, leading to the displacement of thousands of people.

1930 Tariff Act that imposed severe tariffs on all incoming goods; European countries responded with their own high tariffs.

Answer explanation

The Hawley-Smoot Tariff was a protectionist measure taken by the United States to protect its domestic industries from foreign competition. It imposed high tariffs on all incoming goods, making it more expensive for foreign companies to sell their products in the US. This had a negative effect on international trade, as European countries responded by imposing their own high tariffs on US imports. This led to a decrease in international trade and a decrease in economic growth in both the US and Europe.

Which TWO answers best describe President Herbert Hoover's presidency during the Great Depression?

• A very hands-on government

• Mostly hands-off government

• Largely unable to better economic conditions

• Created many New Deal programs

Answer explanation

President Herbert Hoover's presidency during the Great Depression was marked by a lack of government intervention in the economy. Hoover believed that the government should not interfere with the free market and instead relied on voluntary cooperation between businesses and individuals to help the economy recover.

​ (a)   pledged to the American people that he would provide them with a ​ (b)   which focused on the ​ (c)   : ​ (d)   .

​

• Franklin D. Roosevelt
• New Deal
• Three R's
• Relief, Recovery, and Reform
• Teddy Roosevelt
• Square Deal
• Green New Deal
• Three C's
• Control of Corp., Conservation, Cons. prote.

Answer explanation

It is generally accepted that Franklin D. Roosevelt pledged to the American people to provide a "New Deal" during his campaign for the presidency in 1932, and that this New Deal would focus on the "Three R's" of Relief, Recovery, and Reform. Overall, the New Deal represented a significant expansion of the federal government's role in the economy and society, and had a lasting impact on American politics and society.

This insures bank deposits of individual citizens.

Answer explanation

The FDIC guarantees that if a bank fails, the depositor will receive all or part of their deposits back, up to a certain amount. This helps to protect depositors from losing their money if a bank fails

New Deal Legislation that provided pensions workers reaching retirement age.

Answer explanation

The Social Security Act of 1935 was a New Deal legislation that provided pensions to workers reaching retirement age. The Act established a system of social insurance that provided benefits to retired workers, the unemployed, and the disabled. It also provided for the collection of taxes from employers and employees to fund the program. The Act was a major step forward in providing economic security for the elderly and other vulnerable populations.

Which statements describe the Federal Deposit Insurance Corporation (FDIC)?

Select TWO correct answers.

• It was created as a result of World War I.

• One of its purposes was to maintain financial stability.

• It was created as a result of Prohibition.

• One of its purposes was to increase trade with foreign nations.

• It was created as a result of the Great Depression.

Answer explanation

The Federal Deposit Insurance Corporation (FDIC) is a United States government agency that was established in 1933 in response to the banking crisis of the Great Depression. The FDIC provides deposit insurance to protect depositors in case their bank fails or becomes insolvent.