EXAM Practice: 1920s and the Great Depression

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

Which TWO answers best describe President Herbert Hoover's presidency during the Great Depression?

• A very hands-on government

• Mostly hands-off government

• Largely unable to better economic conditions

• Created many New Deal programs

Which of the following was a cause of the Great Depression

• stock market crash

• factories and farms produce more goods than people can buy

• banks make loans that borrowers cannot pay bac

• all choices are correct

At the time of the stock market crash, the government did not insure bank deposits, so

• banks kept only a fraction of depositors’ money in reserve.

• customers lost their savings if a bank collapsed.

• banks had to make money by making loans and investing.

• customers turned to their stockbrokers for help.

During the Great Depression, neighborhoods of shacks would be known as...

• Shantytowns

• Hoovervilles

• Ghettos

• Projects

True or False: Conditions for Minorities improved during the Great Depression

• True

• False