In what ways did the Federal Reserve System (FRS) promote healthy economic activity?

set policies to regulate the money supply

Provided emergency financing to banks and large companies, hoping to better the economy

Reconstruction Finance Corporation

Why was the term Okies inaccurate?

Migrants came from other states as well

Major cause of the Dust Bowl

Farmers experienced drought conditions

People rushed to withdraw savings

What did the Hoover Dam project's success demonstrate?

power of partnerships between gov't and businesses

How did teenage hobos manage to survive?

formed communities with other homeless adults

Why did voluntary cooperation NOT work (cooperatives).

based decisions on own needs, not the group

What was the Federal Home Loan Bank?

encouraged home building with lower interest rates

How did Hoover put into practice the idea of the associative state?

called meetings of business leaders and experts

Why did the run-up of the stock market continue despite the Federal Reserve's actions?

Corporations began lending $ to investors

Why did many Americans lose their homes?

No job or income it was hard to pay the mortgage

What was the purpose of passing the Smoot-Hawley Tariff?

hoped to keep Am goods and jobs here

What helped drive the expansion of the economy?

Automobile & growth of manufacturing

Why were so many farms foreclosed?

as income dropped, loans could not be repaid

How did the RFC and Fed Home Loan Bank affect Ams?

expansion of govt in the business of Am people

Why did margin buying seem like an easy way to make money?

Enough money was made to to create a profit

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Great Depression

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Questions 43

Answers

1
Investing in the stock market on the chance you might make a profit (risky)
risky business
all eggs in one basket
speculation
margin buying
2
How much did the gross national product (GNP) rise between 1922-28?
60%
30%
5%
15%
3
Another cause of the Dust Bowl
overpricing
over, I'm over it
overproduction
overpoulation
4
In what ways did the Federal Reserve System (FRS) promote healthy economic activity?
set policies to regulate the money supply
Backed money with gold
decreased interest rates
allowed farmers to file bankruptcy
5
Provided emergency financing to banks and large companies, hoping to better the economy
Smoot-Hawley Tariff
Reconstruction Finance Corporation
None
Emergency Act 1932
6
After WWI, the demand for farm goods and crop prices ___
increased
remained the same
decreased
sharply rose
7
Why was the term Okies inaccurate?
Migrants came from other states as well
Migrants were really called hoboes
People on Oklahoma were not affected by the drought
People thought positively of the name
8
Major cause of the Dust Bowl
Farmers experienced drought conditions
Farmers left town to find jobs
Farmers were foreclosing on equipment and could not harvest
Farmers were broke
9
What was a bank run?
People went bankrupt
People took out large loans to invest
People rushed to withdraw savings
Banks would run up prices of loans
10
What did the Hoover Dam project's success demonstrate?
power of partnerships between gov't and businesses
only jobs could be created in the West
Hoover really was a good Pres
Hoover had no idea how to be Pres
11
Which of the following is NOT an example of the false sense of security in the economy?
Corporate prices soared
Stock prices decreased
Credit increased people's buying power
Unemployment was low
12
How did teenage hobos manage to survive?
formed communities with other homeless adults
found odd jobs
many returned home and could not find jobs
increased crime and theft
13
Why did voluntary cooperation NOT work (cooperatives).
made decisions based on stock market prices
Cooperative groups had little power
Cooperatives only benefited banking industry
based decisions on own needs, not the group
14
In the election of 1928 who was the Republican candidate?
FDR
Woodrow Wilson
Theodore Roosevelt
Herbert Hoover
15
What made Great Plains vulnerable to dust storms?
Careless agriculture practices
Drought
All of the above
Overproduction
16
A period of rising stock prices
bull market
boom market
bear market
rocket market
17
President during the GD
Horton hears a Who
Herbert Hoover
Hoover the Mover
Hoover vacuum
18
Why did bank failures have an effect on Americans?
Ams could not repay loans
Many lost savings
Ams could not purchase on credit
Banks repossessed homes and farms
19
Date of the stock market crash
October 29, 1839
October 29, 1929
October 28, 1939
October 28, 1928
20
Negative term for migrants heading out West
Smokies
Okies
Westerners
Dokies
21
What was the Federal Home Loan Bank?
None of the above
gov't loans to build houses
new banks backed by gov't
encouraged home building with lower interest rates
22
One factor contributing to consumer debt
high interest rates
purchasing on credit
unemployment
overproduction
23
How did Hoover put into practice the idea of the associative state?
passed $ to states for welfare payments
blocked federal welfare on all levels
called meetings of business leaders and experts
believed in rugged individualism
24
Why did the run-up of the stock market continue despite the Federal Reserve's actions?
Corporations began lending $ to investors
Banks were private and did not follow the FRS actions
None of the above
Bank decreased interest rates
25
Why did many Americans lose their homes?
No job or income it was hard to buy food
No job or income it was hard to pay the mortgage
No job or income it was hard to pay car loans
No job or income it was hard to pay back brokers
26
Where were the Okies headed?
California
New York
Hoover dam
Atlanta
27
Why were there so many teenage hobos?
Some left on their own
Many were forced to live on their own
Parents could not take care of them
ALL
28
Statistical data showing trends in the economy
economic indicator
fuel indicator
stock returns
market analysis
29
What was the purpose of passing the Smoot-Hawley Tariff?
only allowed Mexico and Canada to trade with US
a way to help Europe pay back loans
hoped to keep Am goods and jobs here
to increase income tax to help fund gov't
30
What helped drive the expansion of the economy?
Automobile & growth of manufacturing
Telephones & TV's
Affordable healthcare
Cheap stock prices
31
Drove many banks out of business
All
bank runs
loan failures
foreclosures
32
Large towns made up of shacks
Hills of Hoover
Hoovervilles
Slums
Shackvilles
33
Stock Market crashed on
Black Monday
Black Tuesday
Black Friday
Holy Sunday
34
Why were so many farms foreclosed?
dust bowl increased crop production
as income rose, interest rates increased
banks invested in stock marjet
as income dropped, loans could not be repaid
35
Party that takes advantage of the anti-Hoover sentiments in 1930
Tea Party
Green Party
Democrats
Republicans
36
States such as Oklahoma, Kansas, and Texas were affected by
dust bowl
super bowl
cereal bowl
none
37
Large scale projects intended to increase jobs and business
Associative state
Reconstruction Finance Corp
Water works
Public works
38
Supported the Patman Bill
WWII vets
Bingo
Hoover
Bonus Army
39
Home construction has a __ effect on other industries
negative
spinoff
neutral
positive
40
What was Herbert Hoover's view on Prohibition?
All of the above
He didn't have a view
He supported it
He wanted it repealed
41
How did the RFC and Fed Home Loan Bank affect Ams?
expansion of govt in the business of Am people
provided less jobs in the long run
DID NOT WORK
only provided aid to banks not the people
42
Why did margin buying seem like an easy way to make money?
Anyone could invest
Market signaled decreases, cheaper to buy stocks
Interest rates were high
Enough money was made to to create a profit
43
Which of the following financial factors did NOT lead to the crash in 1929?
Margin buying increased
Speculation increases
Stock prices continued to rise and rise
Speculation decreases

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