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The Great Depression and the Roaring Twenties

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The Great Depression and the Roaring Twenties

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Questions and Answers

What was the primary purpose of the Securities Act of 1933?

To provide insurance for bank deposits and prevent speculative practices

To lower tariffs and increase international trade

To impose taxes on the wealthy and corporations

To regulate the stock market and ensure companies reported stock sales (correct)

What was the result of the New Deal's efforts in the banking system?

The banking system stabilized (correct)

The economy fully recovered from the Great Depression

The stock market collapsed further

Unemployment rates decreased dramatically

What was the result of the Tariff Act of 1930?

An increase in international trade

The Great Depression immediately ended

No change in international trade

A decrease in international trade (correct)

What was the main goal of Franklin D. Roosevelt's relief programs?

To provide aid and employment to those who had lost their savings and needed work (B) Signup and view all the answers

Why did some economists argue that the New Deal prolonged the Depression?

Because it prevented the economy from naturally recovering (C) Signup and view all the answers

What was the purpose of the Agriculture Adjustment Administration?

To provide aid to farmers in exchange for not harvesting their crops (D) Signup and view all the answers

What was the primary reason for the decrease in unemployment rates in the 1940s?

The production increase to supply the war effort in World War II (D) Signup and view all the answers

What was the general consensus among scholars regarding the New Deal's impact?

The New Deal had a broadly positive effect (B) Signup and view all the answers

What was the main goal of the National Recovery Administration?

To restore the economy to healthy levels (B) Signup and view all the answers

What was the significance of the Blue Eagle campaign?

It demonstrated companies' support for workers, therefore attracting customers (B) Signup and view all the answers

What was the primary reason for the speculation in the stock market during the 1920s?

People were confident the market would keep growing. (D) Signup and view all the answers

What was the result of the brokerages calling in their loans during the Great Depression?

Many investors defaulted on their debts. (A) Signup and view all the answers

What was the consequence of the bank runs during the Great Depression?

Many banks failed due to a lack of funds. (D) Signup and view all the answers

Who is credited with warning investors about the impending stock market crash?

Economist Roger Babson (A) Signup and view all the answers

What was the overall effect of the stock market crash on the economy?

Profits and the money supply plummeted, leading to a decline in investments and demand. (B) Signup and view all the answers