Great Depression Crash Course

The Great Depression started because of the stock market crash of 1929.

• True

• False

Which sector was already suffering before the Great Depression began?

• Banking

• Technology

• Agriculture

• Automobile

What was a major reason the Great Depression was not solely caused by the stock market crash?

• The stock market crash only affected the agricultural sector.

• The economy was already showing signs of distress.

• The crash immediately solved the economic issues.

• Consumer confidence was at an all-time high before the crash.

What was a significant effect of deflation during the Great Depression?

• Lower interest rates

• Mass layoffs

• Businesses expanded

• Increased wages

What was a direct consequence of the frozen credit system?

• Deflation

• Economic growth

• Increased consumer spending

• Improved banking stability

What was a major flaw in America's banking system that contributed to the Great Depression?

• Excessive consumer lending

• Over-reliance on agricultural loans

• Lack of federal oversight

• Too many large, stable banks

What did the Hawley Smoot tariff aim to achieve?

• Increase global trade

• Stimulate the banking sector

• Protect American industry

• Lower taxes

What role did World War I play in the Great Depression according to Herbert Hoover?

• It led to technological advancements that prevented the depression.

• It created a global economic disaster due to debts and reparations.

• It had no significant impact on the Great Depression.

• It helped stabilize the American economy.

Why was Hoover's response to the Great Depression considered insufficient?

• He implemented too many banking regulations.

• He refused to engage in any public works projects.

• He relied too heavily on private businesses and local governments.

• He focused too much on global issues.

How did the public respond to the economic hardships of the Great Depression?

• By increasing savings

• Through widespread protests

• By investing in the stock market

• By supporting international trade