Monetary Policies
What primary financial institution attempted to control economic conditions during the lead-up to the Great Depression?
A) World Bank
B) Federal Reserve
C) Treasury Department
D) Wall Street Exchange
B) Federal Reserve
What investment practice became popular but risky before the stock market crash?
A) Long-term investing
B) Buying on margin
C) Government bonds
D) Mutual funds
B) Buying on margin
Which president introduced the New Deal programs?
A) Herbert Hoover
B) Franklin D. Roosevelt
C) Woodrow Wilson
D) Calvin Coolidge
B) Franklin D. Roosevelt
What term describes the mass migration of farmers from the Great Plains during the 1930s?
A) The Great Escape
B) The Dust Bowl
C) The Urban Shift
D) The Farm Exodus
B) The Dust Bowl
What economic philosophy did the New Deal represent a shift towards?
A) Laissez-faire capitalism
B) Communism
C) Government intervention in the economy
D) Free market absolutism
C) Government intervention in the economy
How did the Federal Reserve's monetary policy contribute to economic hardship?
A) By increasing money circulation
B) By constricting the money supply
C) By lowering interest rates
D) By creating new currency
B) By constricting the money supply
What primary consequence occurred when the stock market collapsed?
A) Increased government regulation
B) Many investors lost their investments
C) Banks became more stable
D) Corporate profits increased
B) Many investors lost their investments
What was the primary goal of the Civilian Conservation Corps (CCC)?
A) To provide jobs in construction and conservation
B) To regulate the stock market
C) To distribute food to the hungry
D) To provide loans to farmers
A) To provide jobs in construction and conservation
How did the Great Depression affect family dynamics?
A) It led to increased birth rates
B) It caused many families to split up
C) It encouraged earlier marriages
D) It resulted in larger households
B) It caused many families to split up
Which government agency was created to insure bank deposits?
A) Federal Bureau of Investigation (FBI)
B) Federal Deposit Insurance Corporation (FDIC)
C) Securities and Exchange Commission (SEC)
D) Internal Revenue Service (IRS)
B) Federal Deposit Insurance Corporation (FDIC)
Which financial practice became problematic due to excessive bank lending before the Great Depression?
A) Savings accounts
B) Investment bonds
C) Consumer credit
D) Government loans
C) Consumer credit
Which financial mechanism allowed investors to purchase stocks with borrowed money?
A) Credit cards
B) Personal loans
C) Margin trading
D) Government grants
C) Margin trading
Which New Deal program aimed to provide electricity to rural areas through the building of Dams?
A) Social Security Administration
B) National Labor Relations Board
C) Tennessee Valley Authority
D) Federal Deposit Insurance Corporation
C) Tennessee Valley Authority
What social phenomenon became common as people sought cheap entertainment during the Depression?
A) Exotic vacations
B) Luxury shopping
C) Attending movies
D) Fine dining
C) Attending movies
What was a key feature of the Social Security Act of 1935?
A) Universal healthcare
B) Free college education
C) Old-age pensions
D) Guaranteed minimum income
Correct Answer: C) Old-age pensions
What specific monetary action made debt repayment more challenging for businesses and individuals?
A) Increasing interest rates
B) Reducing credit availability
C) Expanding bank regulations
D) Printing more money
B) Reducing credit availability
What psychological factor drove stock market speculation during the 1920s?
A) Fear of economic collapse
B) Hope of making huge profits
C) Government encouragement
D) International competition
B) Hope of making huge profits
Which New Deal program was designed to provide employment through public works projects and was known by its initials "WPA"?
A) Works Progress Administration
B) Wealth Protection Act
C) Workforce Productivity Alliance
D) Workers' Pension Association
A) Works Progress Administration
How did the Great Depression impact education?
A) It led to increased school funding
B) It caused many schools to close or reduce services
C) It resulted in higher college enrollment
D) It improved teacher salaries
B) It caused many schools to close or reduce services
How did the role of the federal government change as a result of the New Deal?
A) It became less involved in citizens' daily lives
B) It took on a larger role in the economy and social welfare
C) It eliminated all regulations on businesses
D) It reduced its international diplomatic presence
B) It took on a larger role in the economy and social welfare
How did the Federal Reserve's monetary policies directly impact economic stability during the late 1920s? Hint: Interest Rates
A) By stimulating economic growth
B) By preventing bank failures
C) By making debt repayment more difficult
D) By encouraging investment
C) By making debt repayment more difficult
How did the stock market crash directly impact business operations?
A) By increasing employment
B) By creating new investment opportunities
C) By causing business closures
D) By reducing government intervention
C) By causing business closures
Which New Deal program was ruled unconstitutional by the Supreme Court in 1935, leading to a constitutional crisis and Roosevelt's subsequent "court-packing" plan?
A) National Recovery Administration (NRA)
B) Agricultural Adjustment Act (AAA)
C) Tennessee Valley Authority (TVA)
D) Social Security Act
A) National Recovery Administration (NRA)
What long-term psychological effect did the Great Depression have on many who lived through it?
A) Increased optimism about the future
B) A tendency to overspend
C) A lifelong habit of carefullness and saving
D) A distrust of all government institutions
C) A lifelong habit of frugality and saving
What constitutional challenge did President Roosevelt face in implementing New Deal programs?
A) The Supreme Court initially ruled some programs unconstitutional
B) Congress refused to pass any New Deal legislation
C) State governments rejected federal intervention
D) The military opposed domestic spending
A) The Supreme Court initially ruled some programs unconstitutional