Unit 7 Quiz 7
"When the war closed, the most vital of issues both in our own country and around the world was whether government should continue their wartime ownership and operation of many [instruments] of production and distribution. We were challenged with a... choice between the American system of rugged individualism and a European philosophy of diametrically opposed doctrines of paternalism and state socialism. The acceptance of these ideas would have meant the destruction of self-government through centralization... [and] the undermining of the individual initiative and enterprise through which our people have grown to unparalleled greatness." -Herbert Hoover, October 22, 1928 Based on his speech, Hoover would have been MOST likely to support a) supporting the League of Nations b) faith-based charitable organizations c) the Federal program to construct dams in the southeast d) the "Social Security" program for elderly or retired workers
b) faith-based charitable organizations Based on his speech, Hoover would have been MOST likely to support faith-based charitable organizations. Hoover's makes this known when referring tot he option of adopting European-styled socialism: "The acceptance of these ideas would have meant the destruction of self-government through centralization."
-Unstable economy -Overproduction of agriculture products -Instability of the Stock Market -Tight monetary policy of the Federal Reserve All of these items led directly to what event? a) World War I b) World War II c) Great Depression d) Baby Boom Generation
c) Great Depression The Great Depression was caused by many events and defined the 1930s. Speculation and buying on margin caused instability within the financial markets, along with a tight monetary policy of the Federal Reserve. Banks then became unstable and didn't have enough money to keep the economy moving upward. Overproduction of agricultural products led to deflation and unemployment within the economy. All of these events collided and caused the Great Depression.
Stock prices had been going up and more people began buying stocks. "Buying on the margin" became a common practice in the 1920's. A buyer would put 10% down on the stock he/she purchased and then would borrow the other 90% from the stockbroker. When the stock sold then the stockbroker would be paid back, unless the stockbroker issued a "margin call" and wanted immediate payment. Based on the information in this paragraph and on your knowledge of the time period, which statement BEST explains why the Stock Market crashed in 1929? a) As stock prices began to drop, stock holders began to buy up more cheaper stock hoping to make more money later b) Stock brokers tried to convince people to buy stock without putting any down payment down so that they could make more money c) Stock brokers tried to get their stock holders to hold onto their stock to keep the value high so there was little stock being sold d) As stock prices began to drop, more brokers made "margin calls" which led to more devaluing of stock as panic set in as shares flooded the market
d) As stock prices began to drop, more brokers made "margin calls" which led to more devaluing of stock as panic set in as shares flooded the market Based on the above information and your knowledge of the time period, the statement that BEST explains why the stock market crashed in 1929 is as stock prices began to drop, more brokers made "margin calls" which led to more devaluing of stock as panic set in as shares flooded the market. As more shares flooded the market and stock brokers tried to recoup their losses, the value of stocks continued to spiral downward leading to the "crash".
The runs on banks during the Great Depression worsened the country's economic situation because the bank runs a) caused banking institutions to collect funds from the government b) caused overseas investors to worry about giving money to America c) caused the government to stop reimbursing currency for gold bullion d) caused many banks to close and created an even greater shortage of money
d) caused many banks to close and created an even greater shortage of money As people withdrew their saving from banks, less currency was being spread throughout the economy. The bank runs caused many banks to close and created an even greater shortage of money..
During the 1920s, the Federal Reserve increased the money supply and kept interest rates very low, encouraging consumer spending and the brisk borrowing of money. Business investment and the expansion of businesses grew rapidly during the 1920 to meet the needs of this huge consumer spending. However, during the Crash of 1929, the Federal Reserve reversed its expansionary monetary policy and cut off the money supply by almost 30%, causing banks to not have enough currency on hand when depositors wanted their hard-earned money. What was the long-term effect of the Federal Reserve actions? a) election of Franklin D. Roosevelt b) total collapse of banking industry c) high unemployment and low inflation d) slow down of the economy and high unemployment
d) slow down of the economy and high unemployment The long-term effect of the Federal Reserve action was the slow down of the economy and high unemployment. When the money supply was cut off, there was no money for businesses to grow, which caused businesses to cut jobs. As this continued to snowball within the economy, prices were high (inflation), job disappeared, and the economy came to a halt.
https://www.usatestprep.com/modules/gallery/files/63/6332/6332.jpg The photograph shows a crowd gathered on Wall Street after an event that changed the economic behavior of the Roaring Twenties. This event was the a) Stock Market Crash b) death of President Roosevelt c) passage of the Eighteenth Amendment d) passage of the New Economic Policy
a) Stock Market Crash The photograph shows a crowd gathered on Wall Street after the Stock Market Crash of 1929, which dramatically changed the mood of the country. The Stock Market Crash led to the Great Depression, at terrible time for America.
Overproduction and underconsumption factored into causing the Great Depression by a) causing falling prices on goods b) forcing a decrease in mechanization c) leading to more spending than saving d) scaring farmers into growing fewer crops
a) causing falling prices on goods These factors caused a surplus of goods on the market and producers were forced to lower prices to get the goods to sell. Therefore, overproduction and underconsumption caused falling prices on goods.
Which of these played the BIGGEST role in causing the Dust Bowl? a) high demand for agricultural crops b) the lack of pesticides to protect farms c) a lack of available labor for the fields d) a reliance on industrial machinery in farming
a) high demand for agricultural crops Of the choices, a high demand for agricultural crops resulted in farmers over-planting in an attempt to meet that demand. This alone would have damaged the soil, but not enough cause what would be the "Dust Bowl." Wind pushed the loose soil- made worse by drought- into massive banks of dirt that pressed across much of the middle of the country.
During the Great Depression drought and soil erosion contributed to an environmental catastrophe referred to the Dust Bowl. Of the states listed, which was MOST affected by this regional disaster? a) Ohio b) Alabama c) Michigan d) Oklahoma
d) Oklahoma As a result of overfarming, loss of topsoil, and drought the southern plains experienced wind storms resulting in what was called the Dust Bowl. Oklahoma was one of the states most affected. In fact, many of those who fled were called "Okies" because of their origins.
The conditions created by the Dust Bowl led over two million people to move PRIMARILY in which direction? a) eastward b) northward c) southward d) westward
d) westward The conditions created by the Dust Bowl led over two million people to move PRIMARILY westward. By 1940, California had absorbed more than 200,000, migrants fleeing the impacts of the Dust Bowl. The conditions of the Dust Bowl led to the largest migration in US history.
Which statement accurately describes President Hoover's initial response to the Great Depression? a) He promoted the use of direct relief b) He ignored the entire financial situation c) He opposed the construction of Boulder Dam d) He was cautious and encouraged cooperation
d) He was cautious and encouraged cooperation In response to the Great Depression, He was cautious and encouraged cooperation. For example, when the stock market crashed, he called together business leaders, banking leaders, and labor leaders and urged them to work together to find solutions.
Which of these is the BEST description of "Hoovervilles"? a) shantytowns in which homeless families lived during the Great Depression b) housing projects associated with poverty and were constructed in urban areas c) the first planned suburbs which were developed in the period after World War I d) nickname for the department of Housing and Urban Development during the New Deal
a) shantytowns in which homeless families lived during the Great Depression "Hoovervilles" were shantytowns in which homeless families lived during the Great Depression. Constructed out of scrap wood and tin, they were given this nickname because people blamed President Herbert Hoover's lack of action at the start of the Depression for the condition of many newly poor in the United States.
