A.P. U.S. 7.9

What was a significant factor contributing to the struggles of American farmers in the 1920s?

• Increased European demand for American food crops.

• The rise of union membership among farm laborers.

• Over-farming and drought conditions in the Great Plains.

• Government subsidies that led to overproduction.

The term "Okies" refers to people who migrated to California primarily due to which of the following reasons?

• The promise of high-paying industrial jobs in urban centers.

• The availability of free land grants in the western states.

• Unprofitable farming conditions and loss of farms in the Great Plains.

• A desire to escape the strict social norms of the Midwest.

Which of the following was a weakness in the urban industrial economy of the 1920s that contributed to the Great Depression?

• A decrease in the use of credit for consumer purchases.

• A decline in the wealth gap between factory owners and workers.

• The implementation of protective tariffs that led to retaliatory tariffs and lost overseas markets.

• A shortage of consumer goods due to inefficient factory systems.

What practice contributed to the instability of the stock market leading up to the Great Depression?

• Investors primarily buying stocks in stable, well-established companies.

• A decrease in the overall number of people participating in the stock market.

• Buying on margin, where investors paid a small percentage of the stock price and borrowed the rest.

• Strict government regulations preventing speculative investments.

What phenomenon occurred when widespread fear of bank insolvency led customers to withdraw their deposits en masse?

• Stock market crashes.

• Protective tariffs.

• Bank runs.

• Overproduction of consumer goods.

What were some of the immediate economic consequences of the stock market crash of 1929 and the onset of the Great Depression?

• A 10% unemployment rate and a 25% decrease in GNP.

• A 25% unemployment rate, a 50% decrease in GNP, and 20% of all banks closing.

• A 50% unemployment rate and a 20% increase in GNP.

• A 5% unemployment rate and a 10% decrease in bank closures.

President Herbert Hoover was largely blamed for the severity of the Great Depression primarily due to which of the following?

• His aggressive government intervention policies that stifled economic growth.

• His previous experience as Secretary of Commerce, which was seen as inadequate.

• His laissez-faire economic philosophy and perceived inaction in addressing the crisis.

• His direct involvement in the stock market speculation that led to the crash.

The terms "Hoovervilles," "Hoover Flags," "Hoover Blankets," and "Hoover Wagons" emerged during the Great Depression to symbolize what?

• The success of President Hoover's relief programs.

• The public's growing admiration for President Hoover's leadership.

• The widespread poverty and public discontent with President Hoover's response to the crisis.

• New innovations in housing and transportation during the economic downturn.

Which of the following was a key initiative by President Hoover's administration aimed at preventing the collapse of major financial institutions and businesses?

• The Federal Farm Board, which directly purchased surplus crops from farmers.

• The Bonus Army, which provided immediate financial relief to World War I veterans.

• The Reconstruction Finance Corporation, which provided emergency loans to banks, railroads, and other large corporations.

• The Emergency Banking Act, which temporarily closed all banks to assess their solvency.

Which piece of legislation, enacted during Franklin D. Roosevelt's presidency, aimed to separate commercial banking from investment banking to prevent risky speculation with depositors' money?

• The Emergency Banking Act

• The Securities and Exchange Commission Act

• The Fair Labor Standards Act

• The Glass-Steagall Act