The Great Depression Begins - Overla
This test covers Chapter 14 from the textbook. It spans from the Stock Market Crash of 1929 to the Presidential Election of 1932.
- 1.
Which of the following increased in the 1920's:
- A.
Farmers' debts
- B.
Prices for farm products
- C.
Foreign demand for US farm products
- D.
Domestic demand for US farm products
Correct Answer
A. Farmers' debtsExplanation
During the 1920s, farmers' debts increased. This can be attributed to various factors such as overproduction, which led to a decrease in prices for farm products. Additionally, the demand for US farm products both domestically and internationally experienced a decline, further impacting the income of farmers. As a result, farmers were unable to meet their financial obligations, leading to an increase in their debts.Rate this question:
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- 2.
Which of the following was not a cause of the Great Depression:
- A.
Tariffs on foreign goods
- B.
The availability of easy credit
- C.
The number of homeless people who made bad investment choices
- D.
A crisis in the farm industry
Correct Answer
C. The number of homeless people who made bad investment choicesExplanation
The Great Depression was a severe economic downturn that occurred in the 1930s. It was caused by a combination of factors, including tariffs on foreign goods, the availability of easy credit, and a crisis in the farm industry. However, the number of homeless people who made bad investment choices was not a cause of the Great Depression. While it is true that many people lost their homes and investments during this time, it was primarily the result of the economic collapse and not the cause of it.Rate this question:
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- 3.
Which of the following was not a cause of the Dust Bowl:
- A.
Drought
- B.
Excessive high winds
- C.
Thick layers of prairie grass that retained moisture in the soil
- D.
Overproduction of crops
Correct Answer
D. Overproduction of cropsExplanation
Overproduction of crops was not a cause of the Dust Bowl. The Dust Bowl was primarily caused by a combination of drought, excessive high winds, and the lack of thick layers of prairie grass that could retain moisture in the soil. The overproduction of crops, however, contributed to the severity of the Dust Bowl as it led to the removal of natural vegetation and the depletion of soil nutrients, making the soil more susceptible to erosion and the formation of dust storms.Rate this question:
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- 4.
After the Stock Market Crash, how did President Hoover try to help:
- A.
By closing banks so that they couldn't lend money
- B.
By lowering tariffs on foreign goods
- C.
By giving out food, clothing and money to those who needed it
- D.
By asking businesses not to lay off employees and by asking labor leaders not to go on strike
Correct Answer
D. By asking businesses not to lay off employees and by asking labor leaders not to go on strikeExplanation
After the Stock Market Crash, President Hoover tried to help by asking businesses not to lay off employees and by asking labor leaders not to go on strike. This approach was aimed at preventing further economic downturn and maintaining stability in the workforce. By encouraging businesses to retain their employees and labor leaders to refrain from striking, Hoover hoped to mitigate the impact of the economic crisis and prevent widespread unemployment. This strategy was part of his larger effort to stabilize the economy and restore confidence during the Great Depression.Rate this question:
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- 5.
Who made up the Bonus Army that marched on Washington:
- A.
Farmers forced off of their land by dust storms
- B.
World War I veterans and their families
- C.
Unemployed industrial workers and their families
- D.
Business and labor leaders who agreed to work together
Correct Answer
B. World War I veterans and their familiesExplanation
During the Great Depression, many World War I veterans and their families were facing economic hardships. They formed a group known as the Bonus Army and marched on Washington to demand early payment of a bonus promised to them for their military service. The veterans hoped that this bonus would provide them with much-needed financial support during the difficult times. This demonstration highlighted the struggles faced by veterans and drew attention to the government's responsibility towards them.Rate this question:
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- 6.
Which candidates ran for President in 1932:
- A.
Calvin Coolidge and Franklin Roosevelt
- B.
Franklin Roosevelt and Herbert Hoover
- C.
Herbert Hoover and Calvin Coolidge
- D.
Mitt Romney and Barack Obama
Correct Answer
B. Franklin Roosevelt and Herbert HooverExplanation
In 1932, the candidates who ran for President were Franklin Roosevelt and Herbert Hoover. Calvin Coolidge was not a candidate in that election.Rate this question:
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- 7.
What does buying a stock on margin mean:
- A.
Purchasing the stock at a store instead of on the stock exchange
- B.
Buying the stock for someone else
- C.
Paying less than the market value for the stock, for example, paying $25 for a $100 stock
- D.
Borrowing money to help pay for the stock
Correct Answer
C. Paying less than the market value for the stock, for example, paying $25 for a $100 stockExplanation
Buying a stock on margin means borrowing money to help pay for the stock. It allows investors to purchase stocks by borrowing a portion of the purchase price from a brokerage firm. This allows investors to leverage their investments and potentially increase their returns. However, it also carries the risk of magnifying losses if the stock price declines.Rate this question:
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- 8.
Which of the following was not an effect of the Great Depression:
- A.
Many children had a poor diet
- B.
Many families became homeless
- C.
Many men became unemployed
- D.
Many people went into farming and opened their own businesses
Correct Answer
D. Many people went into farming and opened their own businessesExplanation
During the Great Depression, many children had a poor diet due to the lack of resources and financial instability. Additionally, many families became homeless as they were unable to afford housing. Moreover, many men became unemployed as businesses shut down and the economy collapsed. However, the statement that "many people went into farming and opened their own businesses" is not an effect of the Great Depression. In fact, the Great Depression led to a decline in farming and business opportunities as people struggled to make ends meet.Rate this question:
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- 9.
Which of the following describes a government system for giving money or food to the poor people who need it:
- A.
Rugged individualism
- B.
Direct relief
- C.
Bonus Army payments
- D.
Price supports
Correct Answer
B. Direct reliefExplanation
Direct relief describes a government system for providing money or food to the poor people who need it. This term refers to the direct assistance given by the government to individuals or families in need, typically through programs such as welfare, food stamps, or cash transfers. It aims to alleviate poverty and provide basic necessities to those who are unable to afford them on their own. Rugged individualism, bonus army payments, and price supports do not pertain to the government's provision of aid to the poor.Rate this question:
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- 10.
Which of the following best describes President Hoover's approach to dealing with the pain and suffering of Americans during the Great Depression:
- A.
Direct relief - giving food and money to the poor who needed it
- B.
Rugged individualism - the belief that you should be responsible for your own well being and if you can't manage, then local charities and churches should kick in
- C.
Price supports - the government buys excess products and holds them, selling them at ta later date to foreign countries
- D.
Cold heartedness - President Hoover didn't care about the pain and suffering of most Americans during the Great Depression
Correct Answer
B. Rugged individualism - the belief that you should be responsible for your own well being and if you can't manage, then local charities and churches should kick inExplanation
President Hoover's approach to dealing with the pain and suffering of Americans during the Great Depression can be described as rugged individualism. This means that he believed individuals should take responsibility for their own well-being. If they were unable to manage, then local charities and churches should step in to provide assistance. This approach emphasized self-reliance and limited government intervention in providing direct relief to the poor.Rate this question:
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- 11.
Black Tuesday was the day that:
- A.
President Hoover forced the Bonus Army out of Washington DC
- B.
The day after Thanksgiving
- C.
The day that they Stock Market crashed in 1929
- D.
President Hoover was inaugurated
Correct Answer
C. The day that they Stock Market crashed in 1929Explanation
On Black Tuesday, the Stock Market crashed in 1929. This event marked the beginning of the Great Depression, as it led to a severe economic downturn in the United States and had a ripple effect on the global economy. The crash was caused by a combination of factors, including excessive speculation, overvalued stocks, and a lack of government regulation. It resulted in widespread panic, massive job losses, and a significant decline in consumer spending and investment. The effects of the Stock Market crash lasted for several years, causing immense hardship for millions of people.Rate this question:
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- 12.
An unintended effect of the Hawley - Smoot Tariff Act was a:
- A.
Significant increase in US exports
- B.
Increase in the demand for US produced corn
- C.
Major decrease in US exports
- D.
Sudden urge of foreign countries that wanted to buy US goods
Correct Answer
C. Major decrease in US exportsExplanation
The unintended effect of the Hawley-Smoot Tariff Act was a major decrease in US exports. This act, enacted in 1930, raised tariffs on thousands of imported goods in an attempt to protect American industries. However, it resulted in retaliatory tariffs from other countries, leading to a decline in international trade. As a result, US exports significantly decreased, harming the economy and exacerbating the Great Depression.Rate this question:
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- 13.
The main purpose of the Reconstruction Finance Corporation was to give emergency help to:
- A.
Business leaders so that they could keep their businesses open
- B.
Farmers so that they could plant their crops
- C.
Homeowners so that they could afford to pay the mortgages on their homes
- D.
The military so that they could purchase more weapons and ammunition
Correct Answer
C. Homeowners so that they could afford to pay the mortgages on their homesExplanation
The main purpose of the Reconstruction Finance Corporation was to provide emergency assistance to homeowners so that they could afford to pay the mortgages on their homes. This was a response to the economic hardships faced by many homeowners during the Great Depression. By providing financial support, the Reconstruction Finance Corporation aimed to prevent foreclosures and stabilize the housing market. This assistance was crucial in helping homeowners maintain ownership of their homes and avoid displacement during a time of widespread economic crisis.Rate this question:
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- 14.
What is the major difference between a soup kitchen and a bread line:
- A.
There is no difference between the two
- B.
In a soup kitchen you eat soup only, whereas in a bread line you only get bread
- C.
In a bread line, you sit down and have a meal inside a building, in a soup kitchen you leave with your food
- D.
In a soup kitchen, you sit down and eat your food in a building, in a bread line, you leave with your food
Correct Answer
D. In a soup kitchen, you sit down and eat your food in a building, in a bread line, you leave with your foodExplanation
The major difference between a soup kitchen and a bread line is that in a soup kitchen, individuals sit down and eat their food inside a building, while in a bread line, individuals leave with their food.Rate this question:
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- 15.
President Hoover ____________ direct relief for the needy people in the United States during the Great Depression:
- A.
Supported
- B.
Had no opinion towards
- C.
Did not support
- D.
None of the above
Correct Answer
C. Did not supportExplanation
During the Great Depression, President Hoover did not support direct relief for the needy people in the United States. This means that he did not believe in providing government assistance or welfare programs to help those who were struggling financially. Instead, he favored a more hands-off approach, believing that private charities and local communities should be responsible for helping those in need. However, his lack of action and refusal to provide direct relief contributed to the worsening of the economic crisis and increased suffering for many Americans.Rate this question:
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- 16.
Which of the following did not help in bringing about the Stock Market Crash of 1929;
- A.
Price supports
- B.
Buying on margin
- C.
Easy credit
- D.
The increased income gap between the wealthy and the poor
Correct Answer
A. Price supportsExplanation
Price supports did not help in bringing about the Stock Market Crash of 1929. Price supports refer to government policies that aim to artificially maintain or increase the price of a particular commodity, such as agricultural products. However, the stock market crash was primarily caused by factors such as buying on margin, which allowed investors to borrow money to purchase stocks, easy credit, which led to excessive speculation, and the increased income gap between the wealthy and the poor, which created an unsustainable economic situation. Price supports were not directly related to the stock market crash and therefore did not contribute to it.Rate this question:
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- 17.
Which of the following does not indicate a weak economy: (much like what was found during the Great Depression)
- A.
An increase in the unemployment rate
- B.
An increase in the failure of businesses
- C.
A decrease in spending and income
- D.
None of the above
- E.
All of the above
Correct Answer
E. All of the aboveExplanation
All of the options listed indicate a weak economy. An increase in the unemployment rate suggests that there are fewer job opportunities and people are struggling to find work. An increase in the failure of businesses indicates that companies are not able to sustain themselves and are shutting down. A decrease in spending and income suggests that people have less money to spend, which can lead to a decline in economic activity. Therefore, all of these factors indicate a weak economy.Rate this question:
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- 18.
Buying stocks on the chance that you will earn a quick profit without considering the risks is known as:
- A.
Speculation
- B.
Buying on margin
- C.
Profit-taking
- D.
Living on credit
Correct Answer
A. SpeculationExplanation
Speculation refers to the act of buying stocks with the hope of making a quick profit, often without thoroughly considering the associated risks. It involves making investment decisions based on predictions about future market movements rather than on fundamental analysis. Speculators typically engage in short-term trading and are willing to take on higher levels of risk in order to potentially achieve higher returns. This behavior contrasts with a more conservative and long-term investment approach that takes into account the potential risks and rewards of a particular investment.Rate this question:
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- 19.
In calling shantytowns (places where people live in cardboard boxes or whatever material they can find) "Hoovervilles", or newspapers "Hoover blankets", eating out of the garbage a "Hoover dinner" people were conveying their:
- A.
Patriotism
- B.
Trust in Hoover
- C.
Disgust with Hoover
- D.
Respect for Hoover
Correct Answer
C. Disgust with HooverExplanation
The correct answer is "disgust with Hoover". This is because calling shantytowns "Hoovervilles" and referring to newspapers as "Hoover blankets" and eating out of the garbage as a "Hoover dinner" implies that people were blaming President Hoover for the dire economic conditions during the Great Depression. These terms were used to mock and criticize Hoover's perceived failure to address the widespread poverty and unemployment.Rate this question:
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- 20.
An example of the psychological stress caused by the Great Depression was the rise in the number of:
- A.
Men who stood in bread lines
- B.
Women who worked outside of the home
- C.
People who committed suicide
- D.
Children who were malnourished
Correct Answer
C. People who committed suicideExplanation
During the Great Depression, the economic downturn led to widespread unemployment, poverty, and despair. This created a high level of psychological stress among the population. As a result, many individuals felt hopeless and overwhelmed by their circumstances, leading to an increase in the number of people who committed suicide. The financial hardships and loss of hope during this time pushed some individuals to the point of taking their own lives as a tragic consequence of the psychological stress caused by the Great Depression.Rate this question:
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- 21.
Herbert Hoover's approach to the Depression economy was based on a belief in:
- A.
Separation of church and state
- B.
Direct government relief
- C.
The 10 Commandments
- D.
Rugged individualism
Correct Answer
D. Rugged individualismExplanation
Herbert Hoover believed in rugged individualism as his approach to the Depression economy. This means that he believed in the idea that individuals should be self-reliant and take responsibility for their own economic well-being. Hoover opposed direct government relief and instead focused on encouraging businesses and individuals to work together to stimulate the economy. He believed that individuals should rely on their own hard work and determination to overcome economic challenges, rather than depending on government intervention.Rate this question:
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- 22.
During the Great Depression, the overall unemployment rate stood at about:
- A.
25% (1 out of 4)
- B.
50% (2 out of 4)
- C.
75% (3 out of 4)
- D.
100% (4 out of 4)
Correct Answer
A. 25% (1 out of 4)Explanation
During the Great Depression, the overall unemployment rate stood at about 25%, which means that 1 out of every 4 people were unemployed. This high unemployment rate was a result of the economic downturn and widespread job losses during this period.Rate this question:
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- 23.
One long range effect of the Great Depression is that many people grew to:
- A.
Really like President Hoover
- B.
Distrust banks and the banking system
- C.
Develop a special bond with the government
- D.
Became risk takers in the stock market
Correct Answer
B. Distrust banks and the banking systemExplanation
During the Great Depression, many people experienced severe economic hardships, including the loss of their savings due to bank failures. This led to a widespread distrust of banks and the banking system. People felt betrayed and believed that the banks were not reliable or trustworthy. As a result, they became hesitant to deposit their money in banks and instead kept their savings in cash or other forms. This long-lasting effect of the Great Depression shaped people's attitudes towards banks and created a lasting skepticism towards the banking system.Rate this question:
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- 24.
Within a few years, the Hawley - Smoot Tariff Act led to:
- A.
A dramatic drop in world trade
- B.
Hoover's re-election as President
- C.
More demand for American manufactured goods
- D.
An unequal distribution of income in the United States
Correct Answer
A. A dramatic drop in world tradeExplanation
The correct answer is a dramatic drop in world trade. The Hawley-Smoot Tariff Act, which was passed in 1930, imposed high tariffs on imported goods in an attempt to protect American industries. However, this act backfired as other countries retaliated by imposing their own tariffs, resulting in a significant decrease in international trade. This decline in trade worsened the already struggling global economy during the Great Depression.Rate this question:
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- 25.
All of the following were important causes of the Great Depression EXCEPT:
- A.
Both individuals and businesses built up large amounts of debt because of easy credit
- B.
Tariffs on foreign imports were lowered
- C.
The federal government did not insure people's bank accounts
- D.
The stock market crashed
Correct Answer
B. Tariffs on foreign imports were loweredExplanation
During the Great Depression, both individuals and businesses accumulated significant amounts of debt due to easy credit, which contributed to the economic downturn. The federal government's failure to insure people's bank accounts also had a negative impact, as it eroded public trust in the banking system. Additionally, the stock market crash of 1929 is widely regarded as one of the main triggers of the Great Depression. However, tariffs on foreign imports being lowered would not have been a cause of the Great Depression, as it would have encouraged trade and potentially stimulated the economy.Rate this question:
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- 26.
Causes of the farming crisis of the 1920's included the fact that:
- A.
Demand for crops fell after World War I
- B.
Most people did not own electric refrigerators
- C.
The Dust Bowl took much land out of production (it couldn't be used)
- D.
Federal price supports of corn and wheat were not effective
Correct Answer
B. Most people did not own electric refrigeratorsExplanation
Most people not owning electric refrigerators contributed to the farming crisis of the 1920s because it limited the ability to store and preserve crops. Without refrigeration, farmers were unable to keep their produce fresh for extended periods of time, resulting in spoilage and financial loss. This lack of refrigeration also hindered the transportation and distribution of crops, further impacting the demand and profitability of agricultural products.Rate this question:
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