37 Questions
What is the term used to describe the cyclical nature of the economy, with periods of success and failure?
Boom-and-bust cycle
What was the main cause of the stock market crash on 'Black Tuesday' in 1929?
Overspeculation in the stock market
What was the main impact of the stock market crash on businesses and people?
Businesses had to lay off workers and prices decreased
What was the impact of the 'Dust Bowl' on the Great Depression?
It resulted in millions moving from the Great Plains to find economic opportunity in California
How did President Hoover initially respond to the Great Depression?
He believed in a laissez-faire approach and took little action
What was the Reconstruction Finance Corporation created by Hoover intended to do?
Give loans to businesses and banks to stimulate the economy
What were the 'Hoovervilles' mentioned in the text?
Shacks built by the homeless as a result of the Great Depression
What approach did Roosevelt take to address the Great Depression?
He saw it as his responsibility to actively intervene and get the economy back on track.
What was the purpose of Roosevelt's 'fireside chats'?
To encourage and instill confidence in the American people during difficult times.
What were the three main components of Roosevelt's New Deal plan?
Relief, Recovery, and Reform
What was the purpose of the Federal Deposit Insurance Corporation (FDIC) established under the New Deal?
To guarantee the safety of bank deposits, even if a bank failed.
How did the Federal Reserve's monetary policy aim to combat the Great Depression?
By lowering interest rates to increase the money supply and encourage spending.
What did Roosevelt encourage Americans to rely on instead of the gold standard?
Fiat money (paper currency)
Which of the following was NOT a proposed solution to the Great Depression by opponents of the New Deal?
Implementing a universal basic income for all citizens.
What did the Supreme Court rule regarding some of Roosevelt's New Deal legislation?
That it was unconstitutional for violating states' rights under the 10th Amendment.
What amendment was passed after Roosevelt's fourth term to limit the presidency?
The 22nd Amendment
How did the Great Depression impact the role of the federal government in the long term?
The federal government's role in the economy was expanded to try to prevent future crises.
What was the primary goal of Roosevelt's New Deal plan?
To end the Great Depression and improve the lives of citizens
What was the purpose of Roosevelt's 'fireside chats' on the radio?
To encourage and instill confidence in the American people
What was the role of the Federal Deposit Insurance Corporation (FDIC) established under the New Deal?
To guarantee the safety of money deposits in banks
What was the purpose of the Securities and Exchange Commission (SEC) created under the New Deal?
To prevent fraud and ensure transparency in the stock market
What was the primary goal of the Social Security Act enacted under the New Deal?
To provide financial assistance to the elderly and disabled
How did the Federal Reserve's monetary policy aim to combat the Great Depression?
By lowering interest rates to increase the money supply and stimulate spending
What did Roosevelt encourage Americans to rely on instead of the gold standard?
Fiat money (paper currency)
What was the main criticism of the Supreme Court regarding some of Roosevelt's New Deal legislation?
That it violated the rights given to states in the 10th Amendment of the Constitution
What was Roosevelt's proposed solution to address the Supreme Court's rulings against his New Deal legislation?
To appoint new justices to the Supreme Court to ensure his laws would not be overturned
What was the lasting impact of the Great Depression on American politics and society?
It left a lasting mark, with the federal government growing in power by exercising policies to try and get the American economy back on its feet
What was the primary cause of the stock market crash on 'Black Tuesday' in 1929?
Overspeculation in the stock market
How did the Great Depression impact employment in the United States?
Unemployment skyrocketed as businesses had to lay off workers
What was the initial response of President Hoover to the Great Depression?
Hoover believed in a laisses-faire economy and took little initial action
What was the impact of the 'Dust Bowl' on the Great Depression?
It caused a severe drought, forcing millions to migrate to California
How did the Great Depression impact the role of the federal government in the long term?
It resulted in the federal government taking on a more active role in the economy
What was the purpose of the Reconstruction Finance Corporation created by Hoover?
To provide loans to businesses and banks to help them weather the economic crisis
What was the main impact of the stock market crash on businesses and people?
Businesses and people lost vast amounts of money, with less buying power
What was the term used to describe the cyclical nature of the economy, with periods of success and failure?
The 'boom-and-bust cycle'
How did the Smoot-Hawley Tariff contribute to the Great Depression?
It resulted in decreased international trade and economic activity
What were the 'Hoovervilles' mentioned in the text?
Shacks built by the homeless during the Great Depression
Learn about the causes and characteristics of The Great Depression, the worst depression in the American business cycle, including overspeculation in the stock market and the effects of the Smoot-Hawley Tariff.
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