07.01 The Great Depression

Question 2 (5 points) Question 2 Unsaved (07.01 MC) Question refers to the excerpt below. "Where then is the average man's share of the prosperity promised in the election of Mr. Coolidge? It has not arrived and it is not discernible on the horizon. But when the stock boom spends itself and deflation sets in, the average citizen will be invited, as usual, to sustain the losses."—From an editorial in The Nation, February 28, 1925 What problem of the 1920s economy does this excerpt emphasize? (5 points) Question 2 options: 1) Uneven distribution of income 2) Falling crop prices 3) Credit purchasing 4) Bank failures

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Question 5 (5 points) Question 5 Saved (07.01 MC) Question refers to the excerpt below. "The emergency banking legislation passed by the Congress today is a most constructive step toward the solution of the financial and banking difficulties which have confronted the country. The extraordinary rapidity with which this legislation was enacted by the Congress heartens and encourages the country."—Secretary of the Treasury William Woodin, March 9, 1933 What was the aim of the legislation referred to in this excerpt? (5 points) Question 5 options: 1) Reopen banks and convince people to redeposit their cash. 2) Create a federal insurance program for funds held in banks. 3) Separate the banking from the investment industry. 4) Permanently close all of the poorly performing banks.

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Question 4 (5 points) Question 4 Saved (07.01 LC) Which of the following did President Hoover do in an attempt to stabilize the economy or provide relief to citizens? (5 points) Question 4 options: 1) Created the Federal Deposit Insurance Corporation 2) Created the Reconstruction Finance Corporation 3) Funded the building of Hoovervilles 4) Funded the opening of soup kitchens

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Question 8 (5 points) Question 8 Saved (07.01 LC) Which of the following was not a sign of trouble in the U.S. economy before the 1929 stock market crash? (5 points) Question 8 options: 1) Real estate market busts 2) High unemployment rates 3) Great drops in farm crop prices 4) Falling sales of consumer goods

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Question 10 (5 points) Question 10 Unsaved (07.01 MC) Why did President Hoover's "associational action" fail? (5 points) Question 10 options: 1) People were so deeply self-interested as a result of 1920s culture that they would not voluntarily help others. 2) Most Americans had lost respect for the president long before his calls for charitable and collective measures. 3) The economic decline was deeper than had been seen before and beyond saving by the few with means. 4) It depended on goodwill and as the depression worsened, groups of people blamed rather than helped each other.

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Question 6 (5 points) Question 6 Unsaved (07.01 LC) Which of the following is a true statement? (5 points) Question 6 options: 1) The stock market crash of 1929 caused the Great Depression. 2) The Great Depression caused the stock market crash of 1929. 3) The stock market crash of 1929 was a symptom of a failing economy. 4) The failing economy was a symptom of the stock market crash of 1929.

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Question 7 (5 points) Question 7 Unsaved (07.01 MC) Question refers to the image below. Illustration shows two men riding in a car, looking at each other while approaching a line of cars blocking their path. One says, Listen, if those European financiers aren't careful there's going to be a crash! The other responds, Yeah, that's what we gotta look out for. Library of Congress [LC-DIG-hlb-00011] What aspect of the Great Depression does this cartoon emphasize? (5 points) Question 7 options: 1) That no one was paying attention, causing the economy to decline 2) That people with competing goals caused the economy to decline 3) That the economic decline was global, and not just a domestic issue 4) That the cause of the economic decline was foreign investments

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Question 9 (5 points) Question 9 Unsaved (07.01 MC) Question refers to the excerpt below. "A fall in the bloated stock market, driven ever higher during the 1920s by speculators, was inevitable."—Eric Foner, historian Which of the following is a true statement? (5 points) Question 9 options: 1) Most investors knew prices were overvalued, but they continued to invest more to prevent a big loss. 2) No one at the time truly understood the mechanisms of investing, and all were surprised by the crash. 3) Some people expressed concern at the state of the economy, but most believed in prosperity. 4) Very few people could predict the problems to come, and they kept silent to protect their own wealth.

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Question 1 (5 points) Question 1 Unsaved (07.01 MC) Question refers to the excerpt below. "The flow of funds through the hands of the general public into those of the corporations, and from the latter into the hands of brokers and dealers, who then re-lent the funds to the public engaged in speculation, was thus primarily the result of a loose banking policy which had turned from the making of loans on commercial paper to the making of loans on security."—From the Senate Report on the Glass-Steagall Act, 1933 Which of the following statements does the excerpt support? (5 points) Question 1 options: 1) That investors knew what they were doing was illegal 2) That the government failed to recognize danger signs 3) That nothing could be done to stop the stock market crash 4) That there needed to be regulation of the banking industry

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Question 3 (5 points) (07.01 MC) Question refers to the excerpt below. "Economic depression cannot be cured by legislative action or executive pronouncement."—Herbert Hoover, from a message to Congress, December 1930 How did statements like this one affect Hoover's reputation with the American people? (5 points) Question 3 options: 1) They felt he understood and were more confident in their own ability to weather the hard times. 2) They believed he was doing everything possible to help fix the economy through existing agencies. 3) They disagreed with his economic position and thought that he himself had become hopeless. 4) They were angered that he seemed unwilling to use his position to provide direct relief to people.

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