Great Depression Unit Exam

In 1932, the press began calling the World War I veterans who were marching to Washington, D.C., to demand early payment of promised bonuses the "Bonus Army." "Bonus Lobby." "Bonus Rebellion." "Bonus Veterans."

"Bonus Army."

According to the graph above, in what year was the gap between the annual high and the annual low in the stock market largest? 1920 1926 1929 1932

1929

Wiped out by the Depression and by drought, many penniless families left the Dust Bowl and headed to California. the Midwest. the South. Washington, D.C.

California.

"During [World War I] we necessarily turned to the government to solve every difficult economic problem. . . . When the war closed . . . we were challenged with a peacetime choice between the American system of rugged individualism and a European philosophy of diametrically opposed doctrines—doctrines of paternalism and state socialism."—Herbert Hoover, campaign speech delivered October 22, 1928 Based on the excerpt, what can you conclude about how Hoover would respond to the Great Depression as president? He would be hesitant to intervene in the economy. He would greatly expand government spending for public works. He would offer financial help directly to citizens. He would propose greater government control over the economy.

He would be hesitant to intervene in the economy.

What weekly photojournalism magazine was introduced in 1936 by TIME magazine publisher Henry Luce to instant success? America Life Newsweek Guiding Light

Life

"[They have] one-room shacks usually about 10 by 12 feet, have no rug, no water, no bed. In one corner there is a little iron wood stove. Water must be carried from the faucet at the end of the street."—John Steinbeck, from Dust to Eat: Drought and Depression What does the excerpt suggest about how the Great Depression affected Americans? Americans pitched in to help each other through the hard times. Many Americans struggled in truly desperate circumstances. Most Americans had to make small but meaningful sacrifices. Some Americans thrived despite the challenges they faced.

Many Americans struggled in truly desperate circumstances.

What happened when President Hoover asked the Federal Reserve Board to put more currency into circulation? The Board agreed, but delayed taking action. The Board refused to increase the money supply. Congress passed a resolution supporting Hoover. The Senate blocked the Board from taking action.

The Board refused to increase the money supply.

As stock prices declined in 1929, the Hawley-Smoot Tariff led to a decline in U.S. exports. the growth of U.S. industry. an increase in U.S. imports. less competition for U.S. businesses.

a decline in U.S. exports.

One reason that the stock market crash led to the Great Depression was that in 1929, the top 5 percent of all American households earned 30 percent of the nation's income, an example of a bull market. a recession. overproduction. an uneven distribution of income.

an uneven distribution of income.

What percentage of American households owned stocks by 1929? approximately 5% approximately 10% approximately 25% approximately 50%

approximately 10%

Based on the graph above, what was the lowest price of stocks per share during this period? slightly less than $100 per share around $55 per share around $50 per share around $25 per share

around $50 per share

In May 1932, the Senate voted down a bill that would have authorized early payment of World War I veterans' bonuses. given special tax cuts to members of the military. guaranteed health care for all U.S. military veterans. provided jobs to all military veterans.

authorized early payment of World War I veterans' bonuses.

During the Great Depression, many farmers were forced to turn their farms over to banks that held their mortgages. court officers. government agencies. nonpaying tenants.

banks that held their mortgages.

In the early 1930s, to pay for public works projects that would create enough jobs, the government would have to raise taxes or borrow money. lay off federal employees. print money. reduce inflation.

borrow money.

The National Credit Corporation tried to rescue troubled banks by allowing them to continue lending money in their communities. many goods produced by American industry were sold in foreign markets. most Americans did not earn enough to buy the goods they helped produce. speculators were eager to purchase stocks in American companies.

continue lending money in their communities.

During the Great Depression, when a bank collapsed, depositors lost their savings. depositors were repaid if their accounts were insured. the government covered the bank's debts. the government stepped in to run the bank.

depositors lost their savings.

During the Great Depression, many farmers who were already under pressure from debt and falling prices were devastated by drought and the "Dust Bowl." homelessness and "Hoovervilles." migration and repatriation. unemployment and bank closures.

drought and the "Dust Bowl."

Before the late 1920s, stock prices did not change much. generally reflected the stocks' true value. had little to do with the economy. were too high for most people to afford.

generally reflected the stocks' true value.

"[They have] one-room shacks usually about 10 by 12 feet, have no rug, no water, no bed. In one corner there is a little iron wood stove. Water must be carried from the faucet at the end of the street."—John Steinbeck, from Dust to Eat: Drought and Depression What is Steinbeck describing in the excerpt above? boxcars in which hobos rode farm buildings destroyed in dust storms housing given to "Okies" in California shacks in a Hooverville

housing given to "Okies" in California

Although the Reconstruction Finance Corporation loaned about $238 million to banks, railroads, and building-and-loan associations by early 1932, it failed to exercise sufficient caution. increase its lending sufficiently. raise prices on agricultural products. reduce government spending.

increase its lending sufficiently.

According to the chart above, one cause for the decline in sales of automobiles in the years leading up to the Great Depression was declining demand for oil. increased unemployment. a loss of demand. the slowing of industry.

increased unemployment.

The bull market of the 1920s lasted only as long as banks continued to invest in stocks. investors continued putting new money into the market. the federal reserve continued to lower interest rates. stockbrokers continued to make loans to investors.

investors continued putting new money into the market.

In the 1920s, the Federal Reserve contributed to weaknesses in the stock market by keeping interest rates low. lending to foreign companies. lending to speculators. speculating on market interest rates.

keeping interest rates low.

The Emergency Relief and Construction Act provided direct relief to impoverished families. direct relief to struggling banks and businesses. loans to businesses willing to create jobs. loans to the states for direct relief.

loans to the states for direct relief.

The original purpose of the Reconstruction Finance Corporation was to administer public assistance programs. make loans to businesses. manage public works projects. regulate the stock market.

make loans to businesses.

During the 1930s, how many Americans went to the movies each week? fewer than 10 million fewer than 25 million more than 50 million more than 60 million

more than 60 million

Manufacturing output per person-hour rose 32 percent in the 1920s, but the average worker's wage increased only 8 percent, which meant that investment in the stock market led to overproduction. many goods produced by American industry were sold in foreign markets. most Americans did not earn enough to buy the goods they helped produce. speculators were eager to purchase stocks in American companies.

most Americans did not earn enough to buy the goods they helped produce.

In addition to the stock market crash in 1929, a key cause of the Great Depression was deflation. inflation. overconsumption. overproduction.

overproduction.

Thousands of World War I veterans came to Washington, D.C., in 1932 to lobby Congress to enact a bonus for war veterans and their families. pass legislation giving veterans their promised bonuses early. provide military jobs for unemployed veterans. provide public works jobs for unemployed veterans.

pass legislation giving veterans their promised bonuses early.

Thomas Hart Benton, Grant Wood, and other painters of the 1930s were referred to as the journalist school. realists. regionalist school. stream of consciousness.

regionalist school.

President Hoover wanted state and city governments rather than the federal government to provide money directly to impoverished families, known as bonuses. credits. income. relief.

relief.

What portion of the U.S. workforce was unemployed by 1933? about 10% over 15% roughly 25% slightly less than 40%

roughly 25%

"During [World War I] we necessarily turned to the government to solve every difficult economic problem. . . . When the war closed . . . we were challenged with a peacetime choice between the American system of rugged individualism and a European philosophy of diametrically opposed doctrines—doctrines of paternalism and state socialism."—Herbert Hoover, campaign speech delivered October 22, 1928 In this excerpt, Herbert Hoover states that during World War I, the people of the United States had to rely on the government to provide direct relief to families. insure bank deposits. regulate the stock market. solve economic problems.

solve economic problems.

During the 1930s, dairy farmers in Georgia blocked highways and protested against farm foreclosures. protested low prices for agricultural products. stopped court officers from foreclosing on farms. stopped milk trucks, dumping the milk into ditches.

stopped milk trucks, dumping the milk into ditches.

In his novel The Sound and the Fury, William Faulkner exposed the hidden attitudes of characters in a fictional Mississippi county using a technique called continuing story line. escapism. regionalism. stream of consciousness.

stream of consciousness.

"Hunger marches" in Washington, D.C., and other cities were organized by the American Communist Party. the Bonus Army. farm organizations. federal government agencies.

the American Communist Party.

Which of the following measures to address the Depression was enacted by Congress and signed by President Hoover only reluctantly? the Emergency Relief and Construction Act the Hawley-Smoot Tariff the National Credit Corporation the Reconstruction Finance Corporation

the Emergency Relief and Construction Act

The "Dust Bowl" was located in the Great Plains. the Midwest. the Pacific Northwest. the Southeast.

the Great Plains.

While many immigrants chose to leave the United States as a result of the Great Depression, others migrated to California in search of agricultural work. supported relatives who had returned to their native countries. were forced out by the government and by citizen groups. worked with citizen groups to overcome prejudice.

were forced out by the government and by citizen groups.