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