How did the government respond to the call for direct relief to families?

It passed the Emergency Relief and Construction Act.

Banks failed in 1929 and 1930 as a result of the market crash because _______.

investors defaulted on loans for stocks, & banks had invested in the market

What was the purpose of the National Credit Corporation?

to increase the amount of currency in circulation

What was a breadline?

a long line of poor people waiting for free food

What was one way in which speculation contributed to the stock market crash of 1929?

People continued to purchase on margin, driving up the stock artificially.

What were "hunger marches"?

protests organized by Communists; demand higher taxes on rich to feed poor

farmers from Oklahoma who had lost their land and headed west

What did many Dust Bowl farmers do when they lost their land to the banks?

They headed west to California.

Why were investors in a hurry to sell any stock that dropped slightly in price?

because the broker could issue a margin call & demand repayment of the loan

What was the purpose of the series of conferences President Hoover conducted in 1930 in response to the economy?

to convince business leaders to retain workers and maintain wages

What happened when Hoover ordered the removal of the Bonus Army?

Veterans were eventually chased from the Capitol by 700 soldiers.

What was the result of the margin calls from brokers on October 21, 1929?

A panic ensued & people began to sell their stocks, causing prices to dive

What did it mean to purchase stocks on "margin"?

Investor would pay a small amt; the broker would lend the $ for the rest.

What led to a bull stock market in 1928?

economic prosperity and optimism

Why did the entertainment industry grow during the Great Depression?

Most people sought an escape from their troubles.

What was the Bonus Army?

group of 15,000 vets who squatted in Washington, DC demanding early bonuses

What are "public works"?

government-funded building projects

What were shantytowns?

communities of homeless people who lived on public land

Why did the U.S. experience a decline in exports just as the market collapsed?

The Hawley-Smoot Tariff discouraged foreign companies from buying US goods

What was a flaw of the Reconstruction Finance Corporation, created by President Hoover in 1932?

It was too cautious and did not meet the demands of the failing economy.

What was one of the results of the soaring stock market of 1928?

More & more new and often inexperienced investors were entering the market.

What caused the Dust Bowl?

massive drought; turned uncultivated land into dust; blew across the plains

How did the economic collapse of 1929 and 1930 affect the average American worker?

By early 1933, more than one-fourth of the workforce was unemployed.

How did President Hoover initially respond to the stock market crash?

by being optimistic and downplaying the severity of the situation

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US Ch. 9 - The Great Depression Begins

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Questions 30

Answers

1
How did the government respond to the call for direct relief to families?
It told the states to continue spending their own money.
It passed the Emergency Relief and Construction Act.
It created social security and welfare.
It offered families federal loans subsidized by the government.
2
Banks failed in 1929 and 1930 as a result of the market crash because _______.
banks employed most of the brokers who had sold stock on margin
investors defaulted on loans for stocks, & banks had invested in the market
the govt, fearing widespread panic, shut down as many banks as possible
people began to keep their cash in their houses and refused to use a bank
3
What was the purpose of the National Credit Corporation?
to increase the amount of currency in circulation
to begin borrowing money to spend in a deficit
to extend credit to people in order to secure them homes
to lend money to companies to stimulate hiring
4
When too many people attempt to withdraw their money from a bank in fear that the bank will collapse, it is called a
withdrawal panic
investment ladder
bank run
margin call
5
What was a breadline?
common term for the eviction of a person who defaulted on their mortgage
a long line of poor people waiting for free food
the line of people rushing to get into a bank and withdraw their money
a line of credit extended to out-of-work families
6
What was one way in which speculation contributed to the stock market crash of 1929?
The stock market dropped because too many people were buying stocks.
People continued to purchase on margin, driving up the stock artificially.
Investors continued to flood the market; companies sold off too many shares
Brokers who held the loans on margin purchases began to demand repayment.
7
What were "hunger marches"?
lines at soup kitchens & relief centers where people went to get free meals
protests organized by Communists; demand higher taxes on rich to feed poor
the deliberate destruction of food by farmers in order to keep prices up
runs on banks by customers trying to recoup their losses
8
What were "Okies"?
farmers from Oklahoma who had lost their land and headed west
people who visited the homeless camps and gave away free food
sports teams who put on free games for the poor
bankers who lost everything in the market crash and were homeless
9
What principle did President Hoover originally cling to as the solution to the nation's economic troubles?
social security
government intervention
rugged individualism
modified socialism
10
What did many Dust Bowl farmers do when they lost their land to the banks?
They moved to urban areas.
They remained behind and refused to leave.
They headed west to California.
They migrated south to more fertile land.
11
Why were investors in a hurry to sell any stock that dropped slightly in price?
b/c brokers never explained the process of buying on margin to investors
b/c most US viewed the stock market as a means to provide for retirement
because the broker could issue a margin call & demand repayment of the loan
because investors didn't understand the need to invest in quality over time
12
What was the purpose of the series of conferences President Hoover conducted in 1930 in response to the economy?
to force companies to rehire the workers they had laid off
to discuss social improvement projects with members of Congress
to convince business leaders to retain workers and maintain wages
to inform the American public about how the govt was handling the crisis
13
Young men and boys who rode railways from one place to another in search of a better life were called _______.
migrants
hoboes
wanderers
bailiffs
14
What happened when Hoover ordered the removal of the Bonus Army?
The Bonus Army protested and attacked local stores and businesses.
General MacArthur joined the army to express his solidarity.
Veterans were eventually chased from the Capitol by 700 soldiers.
Police ignored him and allowed the army to remain.
15
What was the result of the margin calls from brokers on October 21, 1929?
A panic ensued & people began to sell their stocks, causing prices to dive
Brokers extended more credit to people in order to prop up the market
Investors began to buy more on margin calls hoping to drive prices up
Investors held on to their stocks hoping that the market would rise again
16
What did it mean to purchase stocks on "margin"?
Investor bought only the cheapest stocks, hoping they would rise slowly
Investor would buy a stock & sell it same day in order to turn a quick buck
Broker would take an investor's $$ & invest in stocks they thought best
Investor would pay a small amt; the broker would lend the $ for the rest.
17
What led to a bull stock market in 1928?
the final repayment of Europe's war debt
economic prosperity and optimism
Calvin Coolidge's decision not to run for reelection
Herbert Hoover's election
18
What new entertainment medium gained great popularity during the Great Depression?
talking pictures
comic books
romantic novels
radio
19
Why did the entertainment industry grow during the Great Depression?
Most people sought an escape from their troubles.
It was the only industry whose members were not affected by the 1929 crash.
The unemployed liked to see famous people.
More people were able to buy radios, which had dropped in price.
20
What was the Bonus Army?
group of communist and socialist agitators who attacked the White House
group of 15,000 vets who squatted in Washington, DC demanding early bonuses
group of shantytown residents across the US; helped others find govt jobs
a group of college students who presented options on recovery to Hoover
21
Which of the following was a root cause of the Great Depression?
uneven distribution of income
prohibiting the sale of alcohol
the end of federal control of banks
woman suffrage
22
What are "public works"?
programs to get companies to start hiring
acts of charity by private organizations
government-funded building projects
loans to banks to prop them up during the crisis
23
What great literary work depicted the life of a family of "Okies"?
The Sound and the Fury
Animal Crackers
The Grapes of Wrath
The Guiding Light
24
What were shantytowns?
deserted homes where the tenants had been evicted
communities of homeless people who lived on public land
areas in the cities where the unemployed sought work
collections of migrant workers on failing farms
25
Why did the U.S. experience a decline in exports just as the market collapsed?
Hoover was too late in dropping tariffs in order to increase int'l trade
The Hawley-Smoot Tariff discouraged foreign companies from buying US goods
Companies hurt by the stock market crash could not keep up w/foreign demand
Foreign countries were experiencing prosperity but did not want US products
26
What was a flaw of the Reconstruction Finance Corporation, created by President Hoover in 1932?
It spent beyond its means & wound up borrowing money from foreign entities.
It did not regulate how businesses could spend the money.
It was too cautious and did not meet the demands of the failing economy.
It failed to foresee a 2nd market crash that wiped out all of the progress
27
What was one of the results of the soaring stock market of 1928?
Tax rates were further slashed because of the surplus in government funds.
There was a decrease in the amount of debt carried by the average American.
More & more new and often inexperienced investors were entering the market.
The United States was able to pay off the national debt.
28
What caused the Dust Bowl?
series of tornadoes across the Great Plains destroyed crops
massive drought; turned uncultivated land into dust; blew across the plains
Farmers planted too much wheat & had to burn the surplus to keep prices up
Farmers constantly cultivated the land to help it retain the moisture
29
How did the economic collapse of 1929 and 1930 affect the average American worker?
Wages remained stagnant.
Competition for jobs increased due to a rise in immigration.
Unions began to gain more control.
By early 1933, more than one-fourth of the workforce was unemployed.
30
How did President Hoover initially respond to the stock market crash?
by shutting down the stock market and setting out a plan for recovery
by immediately addressing Congress in order to seek relief for families
by being optimistic and downplaying the severity of the situation
by extending loans to farmers and families about to lose their homes

US Ch. 9 - The Great Depression Begins Flashcards | StudBud