Great Depression and New Deal STAAR Review

Which action by the federal government was one cause of the Great Depression? 

• Failing to decrease the reserve requirement 

• Refusing to regulate the stock market 

• Abolishing the use of the gold standard 

• Eliminating tariffs on foreign trade 

Which reason correctly replaces the question mark on this list? 

• Decrease in interest rates 

• Failure of banks 

• Outsourcing of manufacturing jobs 

• Outbreak of a global war 

Which statement best describes how investment in the stock market during the mid-to-late 1920s contributed to the Great Depression? 

• People were unable to repay the loans used to purchase stocks. 

• Government taxes on stock transactions made it difficult to repay investors. 

• Financial institutions were not required to report earnings to stock investors. 

• Foreign countries were not required to immediately pay stockholder earnings. 

Which statement best explains how bank failures contributed to the Great Depression? 

• People lost their savings because the government did not insure bank deposits. 

• Business could not be done when President Franklin Roosevelt declared a bank holiday. 

• The interest rates on bank loans were too high. 

• Foreign investors did not invest enough in U.S. banks. 

How did the Great Depression affect American society? 

• The price of agricultural goods decreased, causing an increase in demand for farm labor. 

• Manufacturing wages increased, causing businesses to concede to labor union demands. 

• Demand for luxury goods increased, causing overproduction in manufacturing. 

• Businesses were forced to close, causing widespread unemployment. 

Which phrase correctly replaces the question mark in this diagram? 

• Increase in minimum wage 

• Growth of immigration 

• Increase in unemployment 

• Growth in consumer spending 

What was one factor that helped turn the Great Plains into the Dust Bowl in the 1930s? 

• Paying farmers to plant native grasses 

• Increased demand for tobacco after World War I 

• Numerous tornadoes occurring in the region 

• Intense drought in the region 

What was one effect of this new style of “musical Western” on the United States in the 1930s? 

• Country music became more popular than rock and roll music. 

• Country music prompted people to move to farms on the Great Plains. 

• Country music transitioned from a regional genre to a national sensation. 

• Country music encouraged Exodusters to migrate from southern states. 

How did this response to the Great Depression differ from the ideas of Franklin D. Roosevelt? 

• Hoover wanted to implement social welfare programs to provide for the poor. 

• Roosevelt wanted private charities to take responsibility for relief efforts. 

• Hoover wanted to limit the role of the federal government in managing the crisis. 

• Roosevelt wanted state governments to regulate private business activity. 

Which of the following contributed most to the situation described in this excerpt? 

• The rise of corporate monopolies 

• Strict banking regulations and high income tax rates 

• The influx of immigrants into urban areas 

• High unemployment and widespread home foreclosures