Ch.9 The Great Depression Test

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

A terrible drought dried the soil

The stock market crash weekend the nation's banks because?

Banks had invested their deposits in the stock market.

During the Depression, newly homeless people put up communities of shacks that they called

Hoovervilles

Discuss three major root causes of the Great Depression that were at work before the stock market crash of 1929.

Overpopulation, Interest rates, and Making less sells for the market

The stock market took its steepest dive on October 29, 1929, the day now known as

Black Tuesday

The group of world War 1 veterans who marched on Washington in 1932 was called the

Bonus Army

The result when the government spends more than it collects in taxes

Budget Deficit

When the Senate voted down a bill that promised an immediate $1,000 bonus to each veteran of World War I, some veterans.

Camped in vacant building in Washington, D.C.

At the time of the stock market crash, the government did not insure bank deposits, so...

Customers lost their savings if a bank collapsed

Led the troops that dispersed the Bonus Army

Douglas MacArthur

Reluctantly signed by President Hoover to supply relief funds to states

Emergency Relief and Construction Act

Thousands of World War 1 veterans came to Washington, D.C., in 1932 to lobby Congress to..

Give bonus payments to war veterans and their families

The Depression had deep roots in the economy of the 1920s, including overproduction, high tariffs, missteps by the Federal Reserve, and

The uneven distribution of income.

President Herbert Hoover did not want the government to create as many new jobs as the millions of unemployed people needed because that would require?

Increased government spending.

If they remain too low, banks make risky loans and companies expand too much

Interest rates

Stock prices first began to decline in late 1929 because

Investors began to sell their stock

President Hoover's image was tarnished by the rout of the Bonus Marchers, as well as by the

Lingering Depression

Describe the art and popular culture of the 1930s, including movies, radio, literature, and visual art.

Literature and visual art was about the times in the Great Depression. Movies and radios were entertainment for the people so they can escape from reality.

In 1932 President Hoover asked Congress to set up the Reconstruction Finance Corporation in order to allow the government to

Make loans to businesses.

Stockbroker's demand for immediate repayment of a loan used to buy stock

Margin Call

During the Depression, most people were able to enjoy which two popular forms of entertainment?

Movies and radio

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

Only state and city government should dole out relief.

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

Provide a release from daily worries

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

Provide jobs lost in the private sector

Explain how buying stocks on margin worked in the late 1920s, and describe the risks and rewards of this investment practice,

They can try to buy stocks on credits.

As creditors foreclosed on nearly one million farms between 1930 and 1934, some farmers destroyed their crops in a desperate attempt to

Raise prices by reducing supply

In July 1932, Congress overrode President Hoover's veto and passed the Emergency _____________________ Act, which called for $1.5 billion for public works and $300 million in loans to the states for direct relief.

Relief and Construction

After the Federal _____ Board refused to put more money into circulation, President Hoover set up the National Credit Corporation to create a pool of money for troubled banks.

Reserve

In search of work or a better life, many unemployed people.

Rode the Rails.

When President Hoover ordered the buildings in Washington, D.C., cleared of veterans, the ultimate result was 700 ________ chasing unarmed veterans and tear-gassing stragglers

Soldiers

During the depression, charities set up ______________ to give poor people meals

Soup Kitchens

making investments in hope that prices will go up, yielding a quick windfall

Speculation

__________________Invested in stocks, betting that the market would continue to climb so that they could make a quick profit.

Speculators

To portray life around them, artists and writers of the 1930s often used ______________ as subjects in their work,

The homeless and unemployed

As a result of the stock market crash, some banks suffered more losses than they could absorb and

Were forced to close

Buying on margin was a method of buying stocks

With mostly borrowed money

When many depositors decide to withdraw their money at one time

bank run

a long period of rising stock prices

bull market

The Reconstruction Finance Corporation marked the first time that the federal government had established an agency to stimulate the _______ during peacetime.

economy

Companies make more goods than people can buy, causing a decrease in sales

overproduction