Causes of the Great Depression Notes Quiz 2023

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

Which of the following accurately describes how foreign policy contributed to the Great Depression?

• German aggression threatened war, causing massive military buildups and draining treasuries

• European factories produced automobiles, challenging American manufacturing dominance.

• American tariffs slowed global trade by reducing exports, harming worldwide economies.

• South American sugar producers slowed production, straining worldwide supply chains.

What were two basic causes of the Dust Bowl during the early 1930s?

• strip mining and toxic waste dumping

• over farming and severe drought

• clear-cutting of forests and construction of railroads

• overpopulation and urban sprawl

Buying on margin was a method of buying stocks

• with mostly borrowed money.

• without using a broker.

• by pooling money with others.

• without any risk.

Match the categories to the short-term actions that led to the Great Depression

• Wall Street Crash of 1929 Run on Banks / Credit Freezes / Bank Failures

• Social

• Protectionist Policies (Smoot Hawley Tariff)

• Economic

• Panic / Loss of Confidence

• Political

Answer explanation

Which of the following best represents the area in which the Dust Bowl occured?

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Answer explanation

Why did so many banks fail at the onset of the Great Depression?

• Too many investors tried to open new accounts.

• Too many depositors tried to withdraw their money all at once.

• The stock market collapsed too slowly to collect on debts.

• The Federal Reserve put too much money into circulation.

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.

What effect did the Smoot - Hawley Tariff bring during The Great Depression?

• Prevented surplus goods from being sold to other countries

• Opened opportunities for farmers to effectively help banks with the shortage of money

• Companies were able to sell their goods overseas but couldn't get enough profit

• Foreign countries were able to help America with their economy