The Great Depression and the League of Nations Quiz

1.

What caused the Great Depression?
- A.
  
  Germany's inability to pay the reparations after WWI.
- B.
  
  The Wall Street Crash of 1929.
- C.
  
  The Young Plan of 1929-1930.
- D.
  
  USA's decision to become isolationist.
- E.
  
  Lack of world trade.
Correct Answer
B. The Wall Street Crash of 1929.

Explanation
The Wall Street Crash of 1929 is the correct answer because it was one of the major triggers of the Great Depression. The crash, which occurred in the United States, led to a severe economic downturn that spread globally. It caused a collapse in stock prices, widespread panic selling, and a sharp decline in consumer spending and investment. The crash exposed the weaknesses in the financial system and led to a chain reaction of bank failures, unemployment, and a decrease in industrial production, all of which contributed to the Great Depression.

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2.

How did the Depression affect the rest of the world?
- A.
  
  The USA demanded the money that they had loaned out to the European countries back.
- B.
  
  It didn't, only the USA was affected by the Depression.
- C.
  
  The Germans started to burn money, releasing smoke into the atmosphere and causing global warming to become a major issue.
- D.
  
  The Depression caused more countries to trade with each other, causing international relations to improve tremendously.
- E.
  
  The Depression forced countries to start overproducing goods.
Correct Answer
A. The USA demanded the money that they had loaned out to the European countries back.

Explanation
During the Great Depression, the USA demanded the money it had loaned out to European countries back. This had a significant impact on the rest of the world as it led to a contraction in global trade and financial instability. As the USA called in its loans, European countries struggled to repay, leading to economic and political turmoil. This demand for repayment contributed to the deepening of the global economic crisis and exacerbated the already dire situation in many countries.

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3.

What did some countries do in response to the Depression?
- A.
  
  Loan the USA money.
- B.
  
  Make industries employ more workers in an attempt to produce more products and increase profit.
- C.
  
  Attack Germany.
- D.
  
  Charge high tariffs on imported products, causing international trade to decrease.
- E.
  
  Request that Germany pay each country reparations individually in order to pay for the damages it caused during WWI.
Correct Answer
D. Charge high tariffs on imported products, causing international trade to decrease.

Explanation
During the Great Depression, some countries responded by implementing high tariffs on imported products. This was done in an attempt to protect domestic industries and stimulate the economy by encouraging people to buy locally produced goods. However, this action had the unintended consequence of causing international trade to decrease, as other countries retaliated by imposing their own tariffs. This further worsened the economic downturn and contributed to the global nature of the Great Depression.

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4.

What should the League have tried to do during the Depression?
- A.
  
  Discourage nations from becoming too protective of their economies and encourage world trade.
- B.
  
  Encourage printing more money.
- C.
  
  Encourage nations to take products from Germany as repayment for the damages caused during WWI.
- D.
  
  Follow the Laissez-Faire economic policy and let the industries and the economy rise on its own.
- E.
  
  Increase the minimum wages of workers.
Correct Answer
A. Discourage nations from becoming too protective of their economies and encourage world trade.

Explanation
During the Great Depression, the League of Nations should have tried to discourage nations from becoming too protective of their economies and encourage world trade. This approach would have helped to prevent the rise of economic nationalism and trade barriers, which were major contributing factors to the worsening of the global economic crisis. By promoting open markets and international cooperation, the League could have facilitated economic recovery and stability, fostering a more interconnected and prosperous global economy.

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5.

What economic "weapon" did the League try to impose that did not work?
- A.
  
  HMS Dreadnought.
- B.
  
  Sanctions.
- C.
  
  Young Plan.
- D.
  
  Bargy.
- E.
  
  Covenant.
Correct Answer
B. Sanctions.

Explanation
The League of Nations attempted to impose economic sanctions as a means of exerting pressure or punishment on a country that violated international law or engaged in aggressive actions. However, these sanctions did not effectively achieve their intended goals. Sanctions involve imposing trade restrictions, cutting off economic aid, or freezing assets to isolate and weaken the targeted country economically. In this case, the League's attempt to use economic sanctions as an economic "weapon" did not succeed, possibly due to factors such as lack of international cooperation, ineffective implementation, or the targeted country's ability to circumvent the sanctions.

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6.

How many recessions took place in America during the 1920s?
- A.
  
  0
- B.
  
  1
- C.
  
  2
- D.
  
  3
Correct Answer
D. 3

Explanation
During the 1920s, America experienced three recessions. This was a decade of economic turbulence, with the first recession occurring in 1920-1921, followed by the recession of 1923-1924, and finally the Great Depression which began in 1929. These recessions were marked by significant declines in economic activity, including decreases in production, employment, and trade. The multiple recessions during this period had a profound impact on the American economy and shaped the economic policies and regulations that followed.

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7.

What was the result of the depression on commodity prices?
- A.
  
  There wasn't one, prices fluctuated normally.
- B.
  
  Prices increased dramatically.
- C.
  
  Prices decreased dramatically.
- D.
  
  Commodities couldn't be obtained at any price.
Correct Answer
C. Prices decreased dramatically.

Explanation
The correct answer is "Prices decreased dramatically." During a depression, there is typically a decrease in demand for commodities due to a decline in economic activity. This decrease in demand leads to a surplus of commodities in the market, causing prices to drop. As a result, commodity prices would decrease dramatically during a depression.

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The Great Depression And The League Of Nations Quiz

What caused the Great Depression?

How did the Depression affect the rest of the world?

What did some countries do in response to the Depression?

What should the League have tried to do during the Depression?

What economic "weapon" did the League try to impose that did not work?

How many recessions took place in America during the 1920s?

What was the result of the depression on commodity prices?