Great Depression Study Guide

Which group experienced an early depression in the 1920s?

Farmers

In 1929, the stock market crashed because

Investors lost confidence in the market and rushed to sell their shares.

Which of these factors helped hide economic problems in the 1920s?

Americans purchased many consumer goods on credit

What event occurred on Black Tuesday?

Investors sold more than 16 million shares on stock

Why did so many banks collapse at the beginning of the Great Depression?

Too many depostiters tried to withdraw their money all at once

European countries reacted to the Hawley-Smoot Tariff by

Passing high protective tariffs

What economic condition did economist John Maynard Keynes believe caused the Great Depresion?

Lack of government intervention

At the onset of the Great Depression, urban unemployment

Increased dramatically

Which of these factors contributed to the plight of rural farmers?

Falling prices for crops and livestock

Farmers contributed to the problems that led to the Dust Bowl by

Using intensive farming practices that removed protective grasses

President Hoover responded cautiously to the Great Depression because he

thought that the business cycle would correct itself

The policy of volunteerism called for which of the following

Public works program

President Hoover urged Congress to institute the RFC because he believed the economy suffered from

a lack of credit

Some Americans blamed the Great Depression on

Capitalism

Why did many Americans decide that the country needed new leadership in 1932?

President Hoover’s volunteerism and trickle-down economic policies had failed

What was the destination of most Dust Bowl migrants?

Cities to find work

How did the uneven distribution of the nations wealth lead to the depression?

All of the above

Why were banks one of the first institutions to feel the effects on the stock market crash?

People began to lose confidence in the economy and frightened depositors began to remove their money from banks

What did President Hoover do that directly led the Bonus Army March on Washington in 1932?

Vetoed the bill that Congress passed allowing early bonus payment to out-of-work veterans

What event happened when the veteran groups marched in protest on Washington?

Federal troops used tear-gas and marched with their bayonets on the protesters, many of the veterans were injured

While this number is fluid, generally what percent of depositors money do banks keep on hand?

10%

What was the unemployment rate in 2019 and during the majority of the 1920s?

3.7%

Which of these government safety nets was created as a result of the Great Depression?

Social Security

Americans began eating less meat during the Great Depression because

Meat became too expensive

Which of these economic problems struck Germany?

Inflation due to printing more money

WW1 veterans who marched to demand payment of money promised by congress

Bonus Army

Dust Bowl refugees who moved westward to find work

Okies

Risky stock purchases made by investors with the hope of high returns

Speculation

President when the stock market crashed

Herbert Hoover

Government efforts to encourage or pressure Mexican immigrants to return to Mexico

Repatriation

General who dispersed protesters in the capital by ordering federal troops to fire on them with tear gas

Douglas MacArthur

The periodic expansion and contraction of the economy

Business Cycle

Agricultural workers who work on land owned by someone else

Tenant Farmers

The theory that money invested in banks and businesses will work its way through the system to laborers

Trickle-Down Economics

The occasion of the stock market crash

Black Tuesday