Great Depression and 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

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

What caused many farmers to foreclose on their farms in the 1930s?

• Growing too few crops

• Overproduction of crops and costs of machines

• Expensive land and not enough workers

• The Wall Street Crash

What forced banks to close during the Great Depression?

• Huge amounts of inflation

• War in Europe

• Investors unable to pay loans and bank runs

• Not enough people invested in the Stock Market

Why did the stock market collapse in 1929?

• Only wealthy Americans invested in the stock market

• Investors inflated prices, and then sold shares very cheap, losing money

• Investors refused to invest in the stock market

• Investors bought shares cheap, and then sold stocks at a high price

What did RRR stand for in Roosevelt's New Deal?

• Revert, Reduce, Recover

• Restore, Recover, Readjust

• Relief, Recovery, Reform

• Reform, Restore, Reclaim

What was Roosevelt's New Deal?

• A series of government-funded bail outs

• A series of federally funded public works programs

• A hands-off approach to business and the economy

• A series of voluntary business recovery acts

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

• People bought stocks on credit or borrowed money

• Banks had to close because they did not have enough money

• Many businesses had a surplus of goods that couldn't be sold

• The New Deal tried to start too many new programs

What was President Roosevelt's plan for getting the United States out of the Great Depression?

• The New Deal

• The Relief, Recovery,Reform Act

• The Alphabet Agencies

• FDR's Deal

Which president was blamed for making the Great Depression even worse?

• President Roosevelt

• President Hoover

• President Bush

• President Coolidge