Name: 
 

The Great Depression


Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 1. 
A major campaign issue in the 1928 election was
a.
economic recovery.
c.
Depression relief.
b.
Prohibition.
d.
social reform.
 

 2. 
The Federal Reserve contributed to the Depression by
a.
lowering loan rates.
c.
loaning to foreign companies.
b.
raising loan rates.
d.
loaning to speculators.
 

 3. 
In 1932 farmers on the Great Plains began to lose their crops because
a.
the soil lost its fertility.
c.
a wheat fungus devastated the fields.
b.
frequent rains eroded the soil.
d.
the soil dried up.
 

 4. 
President Hoover hoped that public works would
a.
solve the budget deficit.
c.
provide jobs lost in the private sector.
b.
spur the construction industry.
d.
spur industry to create more jobs.
 

 5. 
The National Credit Corporation tried to rescue troubled banks using
a.
tax money.
c.
deficit spending.
b.
money from New York bankers.
d.
money borrowed from foreign banks.
 

 6. 
Thousands of World War I veterans came to Washington in 1932 to lobby Congress to
a.
enact a bonus for war veterans.
b.
pass legislation giving veterans their promised bonus early.
c.
provide public works jobs for unemployed veterans.
d.
provide military jobs for unemployed veterans.
 

 7. 
A major reason for Herbert Hoover’s landslide victory in the 1928 election was
a.
the prosperity of the 1920s.
c.
his promise to end Prohibition.
b.
his tax relief plan.
d.
his plan to support farm prices.
 

 8. 
Before the late 1920s, stock prices
a.
did not change much.
b.
generally reflected the stocks’ true value.
c.
generally did not reflect the stocks’ true value.
d.
were too high for most people to afford.
 

 9. 
Most economists agree that a key cause of the Depression was
a.
overconsumption.
c.
inflation.
b.
overproduction.
d.
deflation.
 

 10. 
During the Depression, many unemployed people
a.
destroyed “Hoovervilles.”
c.
collected unemployment.
b.
lived in federal housing.
d.
rode the rails.
 

 11. 
The Emergency Relief and Construction Act provided
a.
direct federal relief.
b.
loans to the states for direct relief.
c.
loans to businesses willing to create jobs by constructing new facilities.
d.
loans to banks so that they could make home construction loans.
 
 
Causes of the Great Depression
Overproduction and low demand leads to employee layoffs
Low wages reduce consumer buying power
High tariffs restrict foreign demand for American goods
Unemployment reduces buying power
 

 12. 
mc012-1.jpg According to the graphic, high tariffs restricted foreign demand for American manufactured goods. Why were these tariffs in place?
a.
Hoover refused to allow any foreign imports into the country.
b.
It was a provision of the Treaty of Versailles.
c.
It was a constitutional requirement.
d.
It made U.S. goods cheaper than foreign imports.
 
 
“The man who rebuked Mayor Heffernan expressed what many, including President Hoover himself, believed in late 1929: The country merely needed to regain its confidence. As the crisis worsened, Hoover took steps to help the economy recover, but only within the limits of his philosophy of government.” —from The Great Depression
 

 13. 
mc013-1.jpg In 1929, what did many people believe the country needed, according to the excerpt?
a.
trade with other nations
c.
to mint more money
b.
to regain its confidence
d.
higher tariffs
 

 14. 
To fight the Depression, Roosevelt believed the first thing to do was to
a.
provide direct relief to people.
c.
restore confidence in the banks.
b.
set up public works programs.
d.
provide relief for farmers.
 

 15. 
To regulate the stock market, the Roosevelt Administration created the
a.
Federal Trade Commission.
c.
National Recovery Administration.
b.
Securities and Exchange Commission.
d.
Social Security Administration.
 

 16. 
One main purpose of the Townsend plan was to
a.
free up jobs for the unemployed.
c.
nationalize the banking system.
b.
redistribute wealth.
d.
end public works programs.
 

 17. 
Franklin Roosevelt’s “court-packing plan” was a serious mistake because
a.
many Americans opposed the idea of forced retirement.
b.
the angry judges reacted by striking down much of the New Deal legislation.
c.
it appeared to interfere with the Constitution’s separation of powers.
d.
the angry judges struck down the plan as unconstitutional.
 

 18. 
The Emergency Banking Relief Act helped solve the banking crisis by
a.
putting all banks under government operation.
b.
declaring that the gold standard would not be abandoned.
c.
issuing licenses to banks that federal examiners found to be financially sound.
d.
closing the banks long enough for the Federal Reserve to replenish their gold reserves.
 

 19. 
The Home Owners’ Loan Corporation
a.
provided money to help the unemployed pay their mortgages.
b.
lowered mortgage rates when people lost their jobs and could no longer pay.
c.
lengthened the mortgage repayment term and lowered rates for the employed.
d.
provided low-cost loans to help homeless people buy a home.
 
 
nar003-1.jpg
 

 20. 
mc020-1.jpg What can help explain the trend in unemployment between 1933 and 1937?
a.
the Second New Deal
b.
the National Labor Relations Act
c.
the Committee for Industrial Organization
d.
the Social Security Act
 

 21. 
mc021-1.jpg What explains the change in unemployment from 1937 to 1938?
a.
new banking regulations
c.
the recession of 1937
b.
the Fair Labor Standards Act
d.
the failure of the corresponding plan
 

 22. 
During the late 1920's, foreign countries did not have enough money to buy crops produced in the United States because __________.
a.
the United States was not able to grant loans
b.
the price.of crops had sharply increased
c.
their money was spend on US manufactured goods
d.
there was a shortage of crops in the U.S.
 

 23. 
The Federal Deposit Insurance Corporation __________.
a.
insured bank depositors savings
b.
replaced Hoover's Finance Corporation
c.
regulated stock and bond markets
d.
regulated savings and loan industry
 

 24. 
The effects of the Great Depression on world trade was __________.
a.
to increase it
c.
to cause a slight decline
b.
to cause a major decline
d.
to stop it entirely
 

 25. 
The first American president elected after the Depression began was __________.
a.
Calvin Coolidge
c.
Franklin Roosevelt
b.
Herbert Hoover
d.
Woodrow Wilson
 

 26. 
What was the purpose of President Roosevelt's New Deal?
a.
to build the "Great Society"
b.
to help Germany pay war reparations
c.
to solve the economic problems of the Depression
d.
extend American influence abroad
 

 27. 
Which one of the following was proposed by the New Deal?
a.
expanded American influence in foreign affairs
b.
increased American financial assistance to economically depressed nations
c.
greater support for the American military-industrial complex
d.
greater American government involvement in domestic economic matters
 

 28. 
A major result of the New Deal legislation in the USA was __________.
a.
"laissez-faire" capitalism survived the Depression
b.
the Republican Party increased its electoral strength
c.
the USA economy came out of the Depression by 1935
d.
the USA economy became a more regulated economy
 

 29. 
In 1933, Roosevelt restored confidence in the American banking system by __________.
a.
reducing tariffs
b.
increasing gold reserves
c.
devaluating the dollar
d.
nationalizing the banking system
 

 30. 
Roosevelt's first "100 Days" succeeded in __________.
a.
ending organized crime related to prohibition.
b.
providing full employment.
c.
increasing agricultural production to feed the hungry.
d.
restoring confidence to the American people.
 

 31. 
All of the following were accomplished during Roosevelt's first "100 Days" EXCEPT __________.
a.
reform of the Supreme Court
b.
introduction of "fireside chats"
c.
reorganization of the banking system
d.
introduction of the "alphabet agencies"
 

 32. 
President Hoover tried to restore public confidence in the economy by __________.
a.
giving federal aid to private charities.
b.
declaring that the depression had ended.
c.
announcing his intention to resign.
d.
prohibiting employers from laying off workers.
 

 33. 
The Reconstruction Finance Corporation was founded on the theory that the __________.
a.
federal government should provide direct relief to the unemployed.
b.
government could end the depression by hiring new employees.
c.
aid given to business would eventually help ordinary people.
d.
depression would end by itself.
 

 34. 
One sign of an economic slowdown before 1929 was a decrease in __________.
a.
investments in new plants.
c.
consumer prices.
b.
workers' wages.
d.
the gross national product.
 

 35. 
As a result of growing business inventories in the late 1920s, __________.
a.
factories cut production of goods.
b.
factories began to hire more workers.
c.
demand for durable goods increased.
d.
more people began to invest in the stock  market.
 

 36. 
Which was NOT a result of the Great Depression?
a.
The work week was reduced.
b.
Fewer cars were produced.
c.
Unemployment declined.
d.
The gross national product declined.
 

 37. 
President Hoover's policies in the beginning of the depression were based on the assumption that __________.
a.
the business cycle would correct itself.
b.
government should borrow money for public-works projects.
c.
wages of most workers should be cut.
d.
leaders of the business community were unable to improve economic conditions.
 

 38. 
The term "brain trust" referred to a group of __________.
a.
anti-New Deal senators.
b.
business leaders who supported the New Deal.
c.
scholars who opposed the New Deal.
d.
President Roosevelt's advisers.
 

 39. 
In his inaugural address in 1933, President Roosevelt declared that __________.
a.
the depression must run its course.
b.
labor legislation would hurt chances for an economic recovery.
c.
vigorous antidepression measures would be taken.
d.
unemployment had been virtually eliminated.
 

 40. 
The Wagner Act required employers to __________.
a.
pay a minimum wage.
b.
hire employees who were union members.
c.
engage in collective bargaining.
d.
provide a pension for every retired employee.
 

 41. 
Roosevelt tried to solve the banking crisis by supporting legislation that __________.
a.
allowed sound banks to borrow federal funds.
b.
prohibited monopoly in the banking business.
c.
placed financially troubled banks under federal ownership.
d.
restricted the amount of money a depositor could withdraw from the bank.
 

 42. 
All of the following problems were meant to be solved by the TVA EXCEPT __________.
a.
flooding.
c.
unemployment.
b.
erosion.
d.
shortage of electricity.
 

 43. 
Many workers were drawn to the Democratic coalition because Roosevelt had __________.
a.
consistently' opposed the National Labor Relations Act.
b.
favored the decision of the Federal Reserve Board to increase interest rates.
c.
prohibited the use of the National Guard in the General Motors sitdown strike.
d.
supported the workers' right to organize.
 

 44. 
During the 1930s some union leaders criticized the American Federation of Labor because it had __________.
a.
organized unsuccessful sitdown strikes.
b.
failed to organize unskilled workers.
c.
failed to support the Wagner Act.
d.
refused to allow industrial union members to attend its national convention.
 

 45. 
Some business owners criticized the Fair Labor Standards Act on the grounds that it __________.
a.
recognized labor unions:
b.
deprived some workers of social security.
c.
threatened free enterprise.
d.
permitted employers to use child labor.
 

 46. 
During the 1930s people migrated westward from the Midwest because of __________.
a.
the Resettlement Administration.
b.
new job opportunities in California.
c.
the plan for an "ever normal granary."
d.
a severe drought.
 

 47. 
Because of the 1937 strike at General Motors, __________.
a.
Congress limited the right of workers to organize labor unions.
b.
the AFL expanded its membership.
c.
the company recognized the United Automobile Workers as the employees' union.
d.
Congress delayed passing the Wagner Act.
 

 48. 
As a result of the sitdown strikes of the 1930s, __________.
a.
Congress passed the Wagner Act.
b.
automobile and steel companies recognized the workers' union.
c.
the government assumed control of several vital industries.
d.
child labor in interstate commerce was banned.
 

 49. 
Roosevelt refused to support a federal antilynching bill because he believed it would __________.
a.
be declared unconstitutional.
b.
reduce the support of southern legislators.
c.
encourage lynching in the South.
d.
threaten passage of other civil rights bills.
 

 50. 
As a result of the New Deal, the federal government __________.
a.
took over ownership of the automobile and steel industries.
b.
worked to discourage the growth of the American Federation of Labor.
c.
assumed responsibility for the needy.
d.
decreased its role as business regulator.
 



 
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