During the 1930s, many Americans preferred movies, radio programs, and other forms of popular entertainment that

provided a release from daily worries.

Stock prices first began to decline in late 1929 because

investors began to sell their stock.

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

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

The Hawley-Smoot Tariff dismayed foreign companies from purchasing US goods

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

because the broker could issue a margin call and demand repayment

Thousands of World War I veterans came to Washington, D.C., in 1932 to lobby Congress to

pass legislation giving veterans their promised bonuses early.

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.

The stock market crash weakened the nation’s banks because

banks had invested their deposits in the stock market.

The Depression had deep roots in the economy including overproduction, high tariffs, missteps by the Federal Reserve, &

the uneven distribution of income.

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.

What led to a bull stock market in 1928?

economic prosperity and optimism

President Hoover opposed direct federal relief to the unemployed because he believed

only state and city governments should dole out relief.

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

More new and often inexperienced investors were entering the market.

Farmers on the Great Plains began to lose their crops during the Depression because

a terrible drought dried the soil.

farmers from Oklahoma who had lost their land and headed west

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

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

President Herbert Hoover hoped that increasing government funding for public works projects would

provide jobs lost in the private sector.

What was a breadline?

a long line of poor people waiting for free food

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Modern American Chapter 18 Review "The Great Depression"

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Chapter 18 Review

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Questions 25

Answers

1
When too many people attempt to withdraw their money from a bank in fear that the bank will collapse, it is called a __.
margin call
withdrawal panic
investment ladder
bank run
2
During the 1930s, many Americans preferred movies, radio programs, and other forms of popular entertainment that
focused on the homeless and unemployed.
evoked indignation at social injustice.
created thrills with new special effects.
provided a release from daily worries.
3
Stock prices first began to decline in late 1929 because
company earnings declined.
several companies went bankrupt.
stockbrokers stopped margin loans
investors began to sell their stock.
4
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
banks employed most of the brokers who had sold stock on margin
people began to keep their cash in their houses and refused to use a bank
the government, fearing panic, shut down as many banks as possible
5
Why did the U.S. experience a decline in exports just as the market collapsed?
Companies that were hurt by the stock crash could not keep up with demand.
The Hawley-Smoot Tariff dismayed foreign companies from purchasing US goods
Hoover was too late in dropping tariffs to increase international trade.
Foreign countries did not want American products.
6
During the Depression, newly homeless people put up communities of shacks they called
Bonus Armies.
Hoovervilles
Okie towns.
hobo towns.
7
Which of the following was a root cause of the Great Depression?
prohibiting the sale of alcohol
woman suffrage
the end of federal control of banks
uneven distribution of income
8
Why were investors in a hurry to sell any stock that dropped slightly in price?
because investors didn't understand the need to invest in quality over time
because most Americans viewed the stock market to provide for retirement
because the broker could issue a margin call and demand repayment
because brokers never fully explained the process of buying on margin
9
What new entertainment medium gained great popularity during the Great Depression?
romantic novels
radio
comic books
talking pictures
10
What great literary work depicted the life of a family of "Okies"?
The Guiding Light
Animal Crackers
The Grapes of Wrath
The Sound and the Fury
11
Thousands of World War I veterans came to Washington, D.C., in 1932 to lobby Congress to
pass legislation giving veterans their promised bonuses early.
give bonus payments to war veterans and their families.
provide military jobs for family members of veterans.
provide public works jobs for unemployed veterans.
12
What was the result of the margin calls from brokers on October 21, 1929?
Brokers began to extend more credit to people to prop up the market.
investors held on to their stocks in the hopes that the market would rise.
A panic ensued & people began to sell their stocks, causing prices to dive.
Investors began to purchase margin calls in the hope of driving up prices.
13
The stock market crash weakened the nation’s banks because
investors could no longer afford to take out loans from banks.
investors no longer had money to deposit in banks.
banks depended on their stock for operating funds.
banks had invested their deposits in the stock market.
14
The Depression had deep roots in the economy including overproduction, high tariffs, missteps by the Federal Reserve, &
an inadequate money supply.
deficit spending by the government.
excessive reliance on export sales.
the uneven distribution of income.
15
How did the economic collapse of 1929 and 1930 affect the average American worker?
Unions began to gain more control.
Competition for jobs increased due to a rise in immigration.
Wages remained stagnant.
By early 1933, more than one-fourth of the workforce was unemployed.
16
What led to a bull stock market in 1928?
Calvin Coolidge's decision not to run for reelection
the final repayment of Europe's war debt
Herbert Hoover's election
economic prosperity and optimism
17
Young men and boys who rode railways from one place to another in search of a better life were called _______.
wanderers
hoboes
baliffs
migrants
18
President Hoover opposed direct federal relief to the unemployed because he believed
individuals are responsible for taking care of themselves
only state and city governments should dole out relief.
charities could provide sufficient relief
federal relief would only shorten the Depression
19
What was one of the results of the soaring stock market of 1928?
More new and often inexperienced investors were entering the market.
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.
The United States was able to pay off the national debt.
20
Farmers on the Great Plains began to lose their crops during the Depression because
the soil lost its fertility.
a fungus depleted the soil of nutrients
frequent rains eroded the soil.
a terrible drought dried the soil.
21
What were "Okies"?
sports teams who put on free games for the poor
bankers who lost everything in the market crash and were homeless
farmers from Oklahoma who had lost their land and headed west
people who visited the homeless camps and gave away free food
22
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.
Investors continued to flood the market, & companies sold off many shares.
Brokers who held the loans on margin purchases began to demand repayment.
People continued to purchase on margin, driving up the price of stock.
23
President Herbert Hoover hoped that increasing government funding for public works projects would
provide jobs lost in the private sector.
help reduce farm foreclosures.
spur the construction industry.
reduce the budget deficit.
24
What was a breadline?
a long line of poor people waiting for free food
a line of credit extended to out-of-work families
common term for the eviction of a person who defaulted on their mortgage
the line of people rushing to get into a bank and withdraw their money
25
________________ invested in stocks, betting that the market would continue to climb so they could make a quick profit.
Speculators
Okies
Baliffs
Stockbrokers

Modern American Chapter 18 Review "The Great Depression" Flashcards | StudBud