Great Depression the New Deal

What was the Great Depression?

• A period of economic success and an improving economy

• The worst economic catastrophe in U.S. history

• A period of time that witnessed American involvement in violent foreign wars

• A hotly contested presidential election

What are the Causes of the Great Depresion?

Answer explanation

1. Tariffs and war debt policies that cut down the foreign market for American goods. ​

2. A crisis in the farm sector.​

3. The availability of easy credit. ​

4. An unequal distribution of income. 

What established the Federal Deposit Insurance Corporation (FDIC)?

• Glass Steagall Act

• Federal Securities Act

• Securities Exchange Commission

• Homeowners Loan Corporation

How did an economic recession help cause the Great Depression?

• Americans bought less, causing less demand for goods

• Bank runs caused depositors to withdraw all their money from banks

• The market bubble popped, crashing Wall Street

• Low interest rates encouraged risky speculation

During the Stock Market crasch of 1929,

• investors quickly bought more stocks to ensure a profit.

• stock prices fell, causing billions of dollars to be lost.

• stores hired more employees to capitalize on consumer demand.

• banks loaned money to homeowners to cover their mortgages.

What was the goal of the Bonus Army in 1932?

• to set up Hoovervilles

• to participate in an antiwar protest

• to lobby for legislation to get bonus pay early

• to gather for a World War I veterans’ reunion

A major cause of the economic depression of 1929 was

• abuse of credit.

• a return to the gold standard.

• increased number of public works projects.

• government programs designed to reduce agricultural production.

Which situation was a basic cause of the Great Depression?

• excessive profits for farmers

• overregulation of the stock market

• overproduction of consumer goods

• continued increases in wages for workers

_____ little towns consisting of shacks.

True or False: Shantytowns are also known as hoovervilles.

• True

• False