The Beginning of the New Deal

Quiz 3 part 1

What event marked the beginning of the Great Depression?

The stock market crash in October 1929.

What happened to the economy after the stock market crash?

The economy worsened steadily, businesses failed, unemployment rose, wages fell, and crop prices dropped.

What major financial crisis occurred in spring 1933?

A severe bank crisis with widespread bank runs and loss of faith in the financial system.

How did President Herbert Hoover initially respond to the stock market crash?

He claimed the crisis was limited to the stock market and had not affected the broader economy.

What was Andrew Mellon’s response to the Depression?

He argued for 'liquidating' labor, stocks, farmers, and real estate to purge economic weakness and reset values.

How did working-class Americans respond to the Depression?

Some organized and mobilized against it, while many focused simply on surviving.

Who won the 1932 presidential election?

Franklin Delano Roosevelt (FDR).

When did Franklin D. Roosevelt serve as U.S. president?

From 1933 to 1945.

What was the New Deal?

FDR’s response to the Great Depression that expanded federal government power to revive the economy and manage inequality.

What was the immediate goal of the New Deal?

To restart the economy and restore Americans’ faith in democratic capitalism.

What was the long-term economic goal of the New Deal?

To manage the economy and limit inequality through a stronger federal government.

What does 'alphabet soup' refer to in the New Deal?

The many new federal agencies created during the New Deal.

What major social program came out of the New Deal?

The modern welfare state, including Social Security.

Who was excluded from some New Deal benefits?

Many Black Americans, especially in the South due to Jim Crow laws.

What groups made up the New Deal coalition?

Labor unions, farmers, northern white ethnics, Southern white voters, and Black voters.

When did Prohibition end?

December 1933.

What is a bank run?

When many people rush to withdraw their money because they fear banks will fail.

What was the purpose of the bank holiday?

To temporarily close banks to stop bank runs and stabilize the financial system.

What did the Emergency Banking Act do?

Increased government supervision of banks.

What was the Glass-Steagall Act?

A law preventing banks from gambling with depositors’ money.

What is the FDIC?

The Federal Deposit Insurance Corporation, which insures bank deposits.

What was the purpose of the National Recovery Administration (NRA)?

To regulate industry and control prices.

What did the Civilian Conservation Corps (CCC) do?

Put young men to work on conservation and public projects.

What was the role of the Public Works Administration (PWA)?

Building large infrastructure projects like dams.

What was the Tennessee Valley Authority (TVA)?

A program that built dams and generated electric power in the South.

Why was the Agricultural Adjustment Act (AAA) created?

To raise crop prices and protect farmers.