Chapter 13 U.S. History

Why did many banks fail in 1929? a. Depositors withdrew their money all at once. b. The Federal Reserve cut interest rates. c. Corruption plagues the banking system. d. The Federal Reserve decreased the money supply.

a. Depositors withdrew their money all at once.

What happened as a result of the Hawley-Smoot Tariff? a. Foreign nations increased their tariffs in response, leading to a decline in trade. b. Foreign companies dominated the thriving world market. c. European nations prospered while the United States suffered. d. The United States asked for loans from European nations.

a. Foreign nations increased their tariffs in response, leading to a decline in trade.

According to John Maynard Keynes, what was the main cause of the Great Depression? a. a lack of government interference in the economy b. uneven distribution of wealth c. a sudden decrease in the money supple d. over-speculation

a. a lack of government interference in the economyCa

Effect of the Great Depression: large number of ___________ and ____________ failed and closed. a. banks & businesses b. farms & grain elevators c. shipyards & naval bases d. Government buildings & post offices

a. banks & businesses

Effect of Great Depression: large numbers of Americans were _______. a. homeless b. All of these c. job less d. hungry

b. All of these

Which 1929 event sparked a chain reaction that led to the Great Depression? a. Bandits robbed banks across the country. b. The stock market crashed. c. The Federal Reserve outlawed speculation. d. Herbert Hoover became president.

b. The stock market crashed.

How did the Federal Reserve try to limit speculation in 1929? a. by cutting interest rates b. by limiting the money supply c. by printing more money d. by closing banks

b. by limiting the money supply

How did the Great Depression affect American workers? a. Work conditions declined in safety and cleanliness. b. They had to learn to use new technology. c. Almost one fourth of all workers were unemployed. d. They were forced to work longer shifts for lower wages.

c. Almost one fourth of all workers were unemployed.

A way of borrowing money from a bank or finance company so that you can have what you want and pay for it later a. Buying on Margin b. Speculation c. Buying on Credit d. Overproduction

c. Buying on Credit

Cause of the Great Depression: government agency that had poor monetary (money) policies and failed to stop the banking system from failing. a. Monetary Budget System b. Central Intelligence Agency c. Federal Reserve d. Supreme Court

c. Federal Reserve

Time period during the 1930s in which a large portion of the U.S. was out of work, hungry, and homeless. a. Jazz Age b. Red Scare c. Great Depression d. Great Recession

c. Great Depression

What happened in 1929 as a result of stock speculation? a. The Federal Reserve had to make more money to match the stock market. b. Increased consumer spending led to greater production. c. Investors lost their expected profits and faced economic devastation. d. Investors became wealthy and helped to stimulate the economy.

c. Investors lost their expected profits and faced economic devastation.

What role did the Federal Reserve play in causing the Great Depression? a. It failed to properly regulate the stock market, which cause speculation and the market's eventual crash. b. It forced weak banks to close, causing depositors to lose their life savings. c. Its policies discouraged lending at a time when more money was needed in the economy. d. Its policies encouraged runs on banks, which exhausted their deposits and caused them to fail.

c. Its policies discouraged lending at a time when more money was needed in the economy.

Cause of the Great Depression: ____________, allowed people to pay for items bit-by-bit, but Americans lost the items when they lost their money. a. debit plans b. rent plans c. installment plans d. payment plans

c. installment plans

Effect of the Great Depression: farmers income fell to low levels due to the ___________ on the Great Plains. a. Dust Devil b. Thunder Storms c. Flash Floods d. Dust Bowls

d. Dust Bowls

What fueled the high stock prices of the 1920s? a. chance b. skill c. patriotism d. confidence

d. confidence

Which factor led to under consumption during the late 1920s? a. expansion of credit b. shortage of consumer products c. poor agricultural conditions d. uneven distribution of wealth

d. uneven distribution of wealth