#05 Great Depression STAAR Review 17-22

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

Answer explanation

The intense drought in the region was a major factor that turned the Great Plains into the Dust Bowl in the 1930s.

Which action by the federal government was one of the 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

Answer explanation

The federal government's refusal to regulate the stock market was one of the causes of the Great Depression.

Which correctly replaces the question mark on this list

• decrease in interest rates

• failure of banks

• Outsourcing of manufacturing jobs

• outbreak of a global war

Answer explanation

The correct choice is 'failure of banks' because it is the only option that is not related to economic factors or global conflicts.

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

• people weren't able 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 stop investors

• foreign countries were not required to immediately pay stockholder earnings

Answer explanation

Investors during the 1920s couldn't repay stock purchase loans, leading to the Great Depression.

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 was about declared a bank holiday

• the interest rates on banks loans were too high

• foreign investors did not invest enough in US Banks

Answer explanation

Bank failures during the Great Depression led to people losing their savings due to the lack of government deposit insurance.

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

Answer explanation

The Great Depression caused businesses to close, leading to widespread unemployment.

Which phrase correctly replaces the question mark in this diagram?

• increase in minimum wage

• growth of immigration

• increase in unemployment

• growth and consumer spending

Answer explanation

The correct phrase that replaces the question mark in the diagram is 'increase in unemployment'. This choice accurately reflects the negative correlation between the increase in unemployment and the decrease in consumer spending.

Which action completes the cause and effect diagram?

• banks lower interest rates

• elected leaders lower tariffs

• companies lay off employees

• they bring unions demand higher wages

Answer explanation

The correct action that completes the cause and effect diagram is when companies lay off employees. This choice directly addresses the cause and effect relationship in the diagram.

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 charity to take responsibility for Relief efforts

• Hoover wanted to limit the role of the Federal Government in managing the crisis

• Roosevelt wanted date governments to regulate Private Business activity

Answer explanation

Hoover's response to the Great Depression differed from Roosevelt's. Hoover wanted to limit the role of the Federal Government in managing the crisis, while Roosevelt wanted date governments to regulate Private Business activity.

What is the purpose of the Securities and Exchange Commission

• to encourage business practices that promote minority employment

• to maintain Fair markets and increase investor confidence in financial institutions

• to encourage business policies that protect the environment

• to ensure worker safety and protect public from hazardous products

Answer explanation

The purpose of the Securities and Exchange Commission is to maintain fair markets and increase investor confidence in financial institutions.