Quiz: The Great Depression! MCQ Trivia
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Questions and Answers
- 1.
The Great Depression was caused by what major event?
- A.
An increase in federal spending.
- B.
The stock market crash.
- C.
Automobile workers going on strike.
- D.
President Hoover announcing a war.
Correct Answer
B. The stock market crash.Explanation
The Great Depression was caused by the stock market crash. This event, known as Black Tuesday, occurred on October 29, 1929, when the stock market experienced a sudden and severe decline. This led to a loss of confidence in the economy, causing investors to sell their stocks and triggering a chain reaction of financial collapse. The crash resulted in widespread unemployment, bank failures, and a severe economic downturn that lasted throughout the 1930s.Rate this question:
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- 2.
People lost their jobs and could not afford to live in their homes.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement suggests that people lost their jobs, which resulted in them being unable to afford their homes. This implies that they had to either find alternative living arrangements or face homelessness. Therefore, the statement is true as it accurately reflects the situation described.Rate this question:
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- 3.
The Great Depression was between and .
Correct Answer
1930
1940 - 4.
An increase in federal spending ended the Great Depression.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement that an increase in federal spending ended the Great Depression is false. In reality, it was the implementation of various policies and programs, such as the New Deal, that helped to alleviate the effects of the Great Depression. These policies included government spending, but it was not solely responsible for ending the economic downturn. Other factors, such as World War II and increased industrial production, also played significant roles in bringing an end to the Great Depression.Rate this question:
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- 5.
What world event happened during the Great Depression that caused an increase in government spending?
Correct Answer
World War 1Explanation
During the Great Depression, World War 1 occurred, which led to an increase in government spending. The war created a demand for military equipment, supplies, and personnel, causing the government to allocate more funds towards defense and war efforts. This increased spending helped stimulate the economy and provided employment opportunities for many people who were struggling during the Depression.Rate this question:
- 6.
The unemployment rate was 11.7% in 1921.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
In 1921, the unemployment rate was indeed 11.7%. This suggests that a significant portion of the population was without work during that time.Rate this question:
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- 7.
The Federal Reserve loosened the money supply to help stop the Great Depression.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because the Federal Reserve actually tightened the money supply during the Great Depression, which worsened the economic crisis. This contractionary monetary policy led to a decrease in the money available for lending and investment, further exacerbating the already severe economic downturn. The Federal Reserve's actions were widely criticized for contributing to the prolonged duration and severity of the Great Depression.Rate this question:
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- 8.
The Consumer Price Index indicates the amount of money spent by who?
Correct Answer
ConsumersExplanation
The Consumer Price Index measures the average change in prices over time for a basket of goods and services typically purchased by consumers. Therefore, it is logical to conclude that the amount of money spent is by the consumers themselves.Rate this question:
- 9.
When the stock market indicates an increase and then something happens to a company, what possible events could happen?
- A.
Stock prices rise, inflation drops and employment rises.
- B.
Employment rises, inflation drops and stocks remain the same.
- C.
Everything remains the same.
- D.
Stock prices could drop, inflate could increase and unemployment rises causing a depression.
Correct Answer
D. Stock prices could drop, inflate could increase and unemployment rises causing a depression.Explanation
If the stock market indicates an increase and then something happens to a company, it is possible that stock prices could drop, inflation could increase, and unemployment could rise, leading to a depression. This is because the event that happened to the company could have a negative impact on the overall economy, causing a decrease in stock prices, an increase in inflation, and a rise in unemployment. These factors combined can contribute to a period of economic downturn known as a depression.Rate this question:
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