Crash Course U.S. History: The Great Depression

What event is often mistakenly thought to have caused the Great Depression?

• World War I

• The Dust Bowl

• The stock market crash of 1929

• The Hawley Smoot tariff

What was a major factor in the unsustainable economic conditions of the 1920s?

• Credit and installment buying

• High tariffs

• Low agricultural production

• Gold standard

What sector suffered throughout the 1920s due to overproduction and low prices?

• Construction

• Agricultural

• Banking

• Automobile

What did Herbert Hoover label as 'an orgy of mad speculation'?

• Automobile manufacturing

• Agricultural expansion

• Stock markets

• Real estate investments

What was a significant cause of the Great Depression according to the text?

• High employment rates

• Overproduction of goods

• High inflation

• Weak banking system

What happened when depositors rushed to take their money out of banks?

• Banks increased interest rates

• Banks went under

• Banks expanded

• Banks thrived

What economic condition is described as being worse than inflation?

• Recession

• Hyperinflation

• Stagnation

• Deflation

What did the Federal Reserve fail to do during the Great Depression?

• Reduce unemployment

• Increase taxes

• Rescue banks

• Raise tariffs

What was the purpose of the Reconstruction Finance Corporation created in 1932?

• To provide emergency loans

• To reduce taxes

• To increase tariffs

• To create jobs

What was the unemployment rate by early 1932?

• 10%

• 15%

• 20%

• 25%