History Chapter 9 Test

Based on the excerpt above, what was Herbert Hoover's philosophy of government?

-limited role for government. -believed in American system of "rugged individualism". - If relief programs were needed, he believed that state and city governments, along with charities and religious groups, should be responsible for them.

the biggest drop of the 1929 stock market crash

Black Tuesday

The group of World War I veterans who marched on Washington in 1932 was called the _________________________.

Bonus Army

led the troops that dispersed the Bonus Army

Douglas MacArthur

T or F-The Depression improved steadily during President Hoover's administration.

F - The Depression WORSENED steadily during President Hoover's administration.

painter of the 1930s who was part of the regionalist school

Grant Wood

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

Movies, radio, comedians, literature and art, writings, paintings

migrants from the Great Plains heading west in search of better lives

Okies

T or F- "Okies" were usually farmers who sold their land and used the profits to travel to California and begin new lives.

Okies" were usually farmers who LOST their land and TRAVELED to California TO LOOK FOR WORK.

set up in 1932 to allow the government to make loans to businesses

Reconstruction Finance Corporation

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

T or F- Blaming the president for their plight, newly homeless people established shantytowns they called Hoovervilles.

T

T or F- During the early 1930s, dust storms blackened the skies of the Great Plains for hundreds of miles.

T

T or F- The Dust Bowl occurred primarily because plowed land was left uncultivated and there was a terrible drought.

T

Describe how the U.S. economy changed as a result of the stock market crash of 1929 and the Depression. What effects did these economic changes have on the lives of American citizens?

The economy of the 1920s was characterized by overproduction, uneven income distribution, high tariffs that suppressed export sales, low interest rates, and a long bull market.

Why did creditors foreclose on nearly one million farmers between 1930 and 1934?

When farmers were unable to repay loans, their creditors moved to seize their lands through foreclosure.

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

When using margin, you could pay as low as 10 percent. However, if the stock price dropped, the broker could demand that the investor repay the loan at once.

writer who showed what characters were thinking before they spoke

William Faulkner

Buying on margin was a method of buying stocks a. with mostly borrowed money. b. without using a broker. c. by pooling money with others. d. without any risk.

a.

The Depression had deep roots in the economy of the 1920s, including overproduction, high tariffs, missteps by the Federal Reserve, and a. the uneven distribution of income. b. an inadequate money supply. c. deficit spending by the government. d. excessive reliance on export sales.

a.

The stock market crash weakened the nation's banks because a. banks had invested their deposits in the stock market. b. investors no longer had money to deposit in banks. c. banks depended on their stock for operating funds. d. investors could no longer afford to take out loans from banks.

a.

____________________ invested in stocks, betting that the market would continue to climb so that they could make a quick profit. a. Speculators b. Okies c. Bailiffs d. Stockbrokers

a. Speculators

President Hoover's image was tarnished by the rout of the Bonus Marchers, as well as by the a. lingering Depression. b. public works funding. c. emergency loans to states. d. National Credit Corporation.

a. lingering Depression

President Hoover opposed direct federal relief to the unemployed because he believed that a. only state and city governments should dole out relief. b. federal relief would only shorten the Depression. c. charities could provide sufficient relief. d. individuals are responsible for taking care of themselves.

a. only state and city governments should dole out relief.

During the Depression, charities set up ____________________ to give poor people meals. a. soup kitchens b. communities c. public works d. dust bowls

a. soup kitchens

As creditors foreclosed on nearly one million farms between 1930 and 1934, some farmers destroyed their crops in a desperate attempt to a. retaliate against their creditors. b. raise prices by reducing supply. c. call public attention to their plight. d. find ways to feed their families.

b.

At the time of the stock market crash, the government did not insure bank deposits, so a. banks kept only a fraction of depositors' money in reserve. b. customers lost their savings if a bank collapsed. c. banks had to make money by making loans and investing. d. customers turned to their stockbrokers for help.

b.

During the Depression, newly homeless people put up communities of shacks that they called a. hobo towns. b. Hoovervilles. c. Bonus Armies. d. Okie towns.

b.

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

b.

The stock market took its steepest dive on October 29, 1929, the day now known as a. Red Thursday. b. Black Tuesday. c. Black Friday. d. Bloody Sunday.

b. Black Tuesday

In 1932 President Hoover asked Congress to set up the Reconstruction Finance Corporation in order to allow the government to a. expand the money supply. b. make loans to businesses. c. provide relief to the unemployed. d. create jobs in public works.

b. make loans to business

To portray life around them, artists and writers of the 1930s often used ____________________ as subjects in their work. a. the middle and upper classes b. the homeless and unemployed c. members of law enforcement d. victims of the stock market crash

b. the homeless and unemployed

many depositors withdrawing their money at once

bank run

Name two visible signs of the Depression that Frederick Lewis Allen does not mention in this excerpt.

breadlines & soup kitchens shantytowns call Hoovervilles

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

budget deficit

a long period of rising stock prices

bull market

President Herbert Hoover hoped that increasing government funding for public works projects would a. reduce the budget deficit. b. spur the construction industry. c. provide jobs lost in the private sector. d. help reduce farm foreclosures

c.

The first feature-length animated film was a. Animal Crackers. b. The Wizard of Oz. c. Snow White and the Seven Dwarfs. d. Mr. Smith Goes to Washington.

c.

When the Senate voted down a bill that promised an immediate $1,000 bonus to each veteran of World War I, some veterans a. burned down public buildings. b. marched to Oregon c. camped in vacant buildings in Washington, D.C. d. demonstrated in front of the White House.

c.

Stockbrokers who made loans that allowed investors to buy stocks could issue a ____________________ to protect their loans. a. collateral call b. credit call c. margin call d. foreclosure call

c. margin call

During the 1930s, many Americans preferred movies, radio programs, and other forms of popular entertainment that a. focused on the homeless and unemployed. b. evoked indignation at social injustice. c. provided a release from daily worries. d. created thrills with new special effects.

c. provided release from daily worries

As a result of the stock market crash, some banks suffered more losses than they could absorb and a. tried to attract more depositors. b. had to approve more loans. c. needed to increase interest rates. d. were forced to close.

d.

In search of work or a better life, many unemployed people a. moved to big cities. b. became farmers. c. became homeless. d. rode the rails.

d.

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 a. much lower unemployment. b. increased government regulation. c. reform of federal taxes. d. increased government spending.

d.

Farmers on the Great Plains began to lose their crops during the Depression because a. the soil lost its fertility. b. frequent rains eroded the soil. c. a fungus depleted the soil of nutrients. d. a terrible drought dried the soil.

d. a terrible drought dried the soil

Stock prices first began to decline in late 1929 because a. stockbrokers stopped margin loans. b. company earnings declined. c. several companies went bankrupt. d. investors began to sell their stock.

d. investors began to sell their stock

During the Depression, most people were able to enjoy which two popular forms of entertainment? a. theater and radio b. theater and sports c. movies and television d. movies and radio

d. movies and radio

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

economy

What signs of the Depression might one notice while walking through an American city, according to the excerpt?

empty buildings and idle factories. Also, the streets might not be so crowded with trucks.

reluctantly signed by President Hoover to supply relief funds to states

i. Emergency Relief and Construction Act

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

interest rates

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

margin call

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

overproduction

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

Based on the graph above, did banks begin closing as an immediate result of the crash?

some

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

speculation

Describe the effects of the stock market crash of 1929 on American banks.

weakened banks > banks lost all their money > banks began closing