Unit 5

Which statement best describes how investment in the stock market during the mid-to-late

1920s contributed to the Great Depression?

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

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

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

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

Which New Deal program still in existence today provides an income for retired people?

• Neeley Project

• Hoover Dam Project

• FDIC

• Social Security Administration

President Franklin D. Roosevelt proposed an increase in the number of Supreme Court justices

because the Court ruled against —

• Bread Lines

• Rationing programs

• FDIC problems

• Some New Deal prograams

Which statement best explains one effect of the New Deal?

• Education became more important

• People relied more on the federal government for assistance

• Bankers needed more help in opening up banks

• More corporations were established

Which of these factors contributed most to the Dust Bowl of the Great Plains in the 1930s?

• Prolonged drought and poor farming practices

• Too much rain over the Great Lakes region

• The building of cities and non stope heat

• Low temperatures and the building of Dams

March 1933 --- The Emergency Banking Act gives President Franklin Roosevelt the power to

control domestic and foreign exchange gold movements.

April 1933 --- President Roosevelt formally suspends the gold standard.

May 1933 ---President Roosevelt takes actions to increase the money supply by changing the

ratio of dollars to gold and fixing the value of dollars to silver.

October 1933 --- The Reconstruction Finance Corporation is authorized to buy gold at

increasing prices, devaluing the dollar and raising prices of U.S. commodities.

What was the aim of these actions ?

• To ensure saving accounts for bankers

• Limit government regulations on all accounts

• Have more regulations and more fun

• To help the national economy

How did the creation of the Federal Deposit Insurance Corporation change the nature of

banking in the United States?

• the 16th Amendment was passed

• The government began to guarantee bank deposits up to $ 250,000

• You could now invest with only a few penalties

• Everyone had to open both a savings and checking account

What was the goal o all the different New Deal programs

• Gave the federal government a larger role in the day to day welfare of its people

• Government started to avoid other countries

• People were obligated to participate in all federal and state programs

• State programs became more important to the average American

Some of President Franklin D. Roosevelt's New Deal programs were declared unconstitutional

when the Supreme Court held that they

• They did not help Corpoarations

• Infringed on the powers reserved by states, 10th Amendment

• Did not help enough

• Were not original enough to complete the task of recovery

The goal of many New Deal agencies support the conclusion that the New Deal —

• was a total failure

• Gave the federal government a larger role in the day-to-day welfare of its citizens

• Forced the average Joe to do more

• Was to encourage more stock market play