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PRACTICE for Great Depression Quiz

Total questions: 29

Worksheet time: 58mins

Name
Class
Date
1.

Why would buying on margin seem like a good idea during the late 1920s?

a)

You only had to use a little of your own money to invest in the stock market

b)

You were guaranteed a massive return on any investment

c)

An investment would double no matter how well the business itself performed

d)

Many investors lost money

2.

How would a decrease in the value of stock affect those who bought on margin?

a)

There would be no impact on those individuals

b)

They could end up owing money and had no way to pay it back

c)

They would have a surplus of funds to pay off their debts

d)

They would be given their money back and be able to pay off their debts

3.

How did workers not being able to afford goods affect factories, farms, and businesses?

a)

It led to an increase in those areas

b)

It led to a decrease in demand and caused those areas to fail

c)

It had no impact on factories or farms, but caused businesses to fail

d)

It only causes a few businesses to close

4.

All of the following groups contributed to banks failing except

a)

People who bought on margin

b)

Farmers who had taken out too many loans

c)

Depositors who placed their life savings in the banks

d)

Banks over-lending funds

5.

If a bank failed and people could not get there before it closed what happened to their life savings?

a)

It was insured by the government so there was no problem

b)

The bank promised to pay them back

c)

Their money was gone

d)

They’d be paid back by those who the bank had loaned their money to

6.

How did businesses try to save themselves when the depression began?

a)

They continued paying workers the same wages

b)

They cut workers and decreased wages for those who remained employed

c)

They took out massive loans from banks

d)

They merged with one another to lower costs and kept all workers

7.

Why did the stock market begin to fail in 1929?

a)

Many of the big investors decided to start selling their stocks and others followed

b)

Fear from the outbreak of war in Europe led to a massive sell off of stocks

c)

Pres. Hoover announced the government would begin regulating the stock market

d)

Communists had attempted to bomb the stock market in New York City

8.

How is the value of stock affected if a massive amount of it is dumped on the market at one time?

a)

It leads to an increase in the value of the stock

b)

It leads to a massive decrease in the value of the stock

c)

There usually is a short period where it decreases and then it greatly increases

d)

There are no changes to the value of the stock

9.

Why did Pres. Hoover respond to the economic depression in the manner he did?

a)

He believed in rugged individualism and laissez faire economics

b)

He believed that the government should do everything it can to help everyone

c)

He believed that the federal government could only help if the people petitioned him directly for assistance

d)

He believed in the prime the pump theory

10.

President Hoover attempted to solve the problems caused by the depression by taking which action?

a)

Passing as many laws as possible to help every American

b)

Loan money to business through the government created Reconstruction Finance Corporation

c)

Giving bonuses to World War One veterans so they could spend the money

d)

Creating social security to free up jobs

11.

President Hoover’s economic theory when it came to addressing the depression is best known as which of the following:

a)

Prime the pump

b)

Trickle down

c)

Swing by the Side

d)

Voodoo Economics

12.

Which of the following terms is given to depression era problems?

a)

Recessionists

b)

Hooverisms

c)

Hundred Dayers

d)

Deficitors

13.

How did Hoover handle the Bonus Army?

a)

he invited the leaders to the White House to address their concerns

b)

he agreed to have the bonuses paid immediately

c)

he called out the US Army to forcibly remove the veterans

d)

he ignore their protests

14.

Why did FDR win the election of 1932?

a)

Most Americans believed that Hoover’s policies were benefiting the nation, but he was too old for the presidency

b)

Hoover had stated he was only running because no one else from the Republican party wanted to run against FDR

c)

Hoover had been implicated in the Teapot Dome Scandal

d)

FDR had promised that the government would take significant action to assist those in need first

15.

How did President FDR plan to address the depression?

a)

By not taking any action

b)

By putting the government to work and take actions to address the depression

c)

By allowing Hoover to continue as president

d)

By allowing Hoover's policies to continue

16.

What was FDR’s plan to address the depression known as?

a)

Great Depression Explanation

b)

The New Deal

c)

Reconstruction Finance Corporation

d)

Roosevelt's Nation Ready Action

17.

This part of Roosevelt's plan to address the depression would aid those in need the most and get people back to work

a)

Relief

b)

Recovery

c)

Reform

d)

Result

18.

This part of Roosevelt's plan to address the depression would put into effect programs to try to prevent another depression

a)

Relief

b)

Recovery

c)

Reform

d)

Result

19.

This part of Roosevelt's plan to address the depression would aid businesses with the goal of restarting the economy

a)

Relief

b)

Recovery

c)

Reform

d)

Result

20.

President FDR’s main economic theory when it came to addressing the depression is best known as which of the following:

a)

Prime the pump

b)

Swing by the Side

c)

Trickle down

d)

Voodoo Economics

21.

How did Pres. FDR keep the American people informed about how he was addressing the depression?

a)

He published a newsletter that was mailed to allow Americans, nationwide known as the ‘pony express’

b)

He conducted radio broadcasts known as ‘fireside chats’

c)

He held weekly television broadcasts known as ‘the weeklys’

d)

He relied on newspapers to do it for him

22.

How did FDR address the issue of banks failing?

a)

He closed all banks nationwide and would only allow them to reopen if they had enough money to cover all funds

b)

He allowed banks to stay open as long as they promised to keep making loans

c)

He authorized the mass printing of paper money

d)

He forced all banks to sell off their land to pay back the funds they had lost

23.

Why was the Wagner Act passed?

a)

To help businesses control workers’ behavior

b)

To protect workers from being fired for joining unions

c)

To raise tariffs on imported goods to help American businesses

d)

To prevent workers from going on strike

24.

Which of the following was not part of the Fair Labor Standards Act?

a)

Setting a minimum wage of 40 cents an hour

b)

44 hour work week

c)

banning of child labor

d)

equal pay for women

25.

This act created the pension system in the United States, provides unemployment insurance, and provides funding for states to support disabled persons and orphans:

a)

Social Security Act

b)

Tennessee Valley Authority Act

c)

Emergency Banking Relief Act

d)

Works Progress Administration Act

26.

The concept of spending more money than the government takes in is known as:

a)

creditory lending

b)

revenue reversals

c)

deficit spending

d)

predatory lending

27.

Why did conservative groups like the Liberty League disagree with FDR’s policies?

a)

They felt he did not do enough to address the problems people were facing

b)

They felt he needed to take stronger actions against banks and rich investors

c)

They felt he was interfering too much with businesses and people’s lives

d)

They wanted heavier taxes on the rich to support the poor

28.

What was the court packing plan?

a)

It was FDR's plan to add more justices to the Supreme Court so he could appoint judges who supported him

b)

It was Congress's way of helping the Supreme Court rule laws unconstitutional

c)

It allowed the Supreme Court to ignore federal laws

29.

Why did FDR want to “reshape the Supreme Court?”

a)

FDR felt they were too old to be on the court

b)

The Supreme Court had been declaring his New Deal programs unconstitutional

c)

To make sure Congress could not influence the Supreme Court

d)

Too many Congressmen were influencing the Supreme Court