Crash Course The Great Depression

What is NOT true about the Great Depression according to the text?

• It started with the stock market crash in October 1929.

• It was a global phenomenon.

• It was characterized by massive unemployment.

• Only rich people were affected by the stock market crash.

What was a major cause of the Great Depression?

• Low levels of domestic consumption in the 1920s.

• America's weak banking system.

• The Federal Reserve infusing too much money into the economy.

• America's strong banking system.

What did NOT contribute to the economic conditions leading to the Great Depression?

• An orgy of mad speculation in the stock markets.

• Agricultural sector prosperity.

• Credit and installment buying.

• Large-scale domestic consumption of new consumer products.

What was Herbert Hoover's role during the Great Depression?

• He was a famous stockbroker.

• He was President of the United States.

• He was a leading economist.

• He was a noted left-wing radical.

What was a consequence of the stock market crash of 1929?

• Immediate onset of the Great Depression.

• Stabilization of the banking system.

• Immediate massive unemployment.

• A temporary recovery of the stock market in 1930.

What was the Federal Reserve's mistake during the Great Depression?

• Providing too much economic stimulus.

• Lowering the discount rate.

• Not rescuing the banks.

• Abandoning the gold standard too early.

What did the Hawley Smoot tariff aim to do?

• Protect American industry by raising tariffs.

• Lower tariffs to promote trade.

• Stimulate the global economy.

• Encourage European countries to lower their tariffs.

What was NOT a response by Hoover to the Great Depression?

• Encouraging private charity.

• Creating the Reconstruction Finance Corporation.

• Massive federal government intervention in the economy.

• Increasing public works expenditures.

What was a global factor that contributed to the Great Depression?

• World War I.

• The prosperity of the 1920s.

• The rapid recovery of European economies.

• Low levels of debt among major countries.

What was the effect of deflation during the Great Depression?

• Banks lent more money.

• Businesses expanded rapidly.

• Increased consumer spending.

• Prices dropped and businesses cut costs by laying off workers.