Chapter 18 Quiz

Question 1

what led to the bull Market of 1928

Answer 1

economic prosperity and optimism

Question 2

what was a effect of the 1928 bull market

Answer 2

inexperienced investors were buying stocks

Question 3

buying stocks on “margin”

Answer 3

pay a small down payment, broker would lend money for the rest

Question 4

why were investors anxious to sell stock

Answer 4

a broker could make a margin call and demand their loan back

Question 5

one way speculation led to the stock market crash of 1929

Answer 5

people bought on margin, artificially inflating stock prices

Question 6

result of 1929 margin calls

Answer 6

-panic -selling stock -market crash

Question 7

why did banks fail from the market crash

Answer 7

used loans for stocks -banks invested in the market

Question 8

When too many people panic and attempt to withdraw their money from a bank

Answer 8

bank run

Question 9

root cause of the depression

Answer 9

uneven distribution of income

Question 10

Why did the U.S. experience a decline in exports just as the market collapsed

Answer 10

A tariff discouraged foreign trade

Question 11

How did the economic collapse of 1929 and 1930 affect the average American worker

Answer 11

By early 1933, more than one-fourth of the workforce was unemployed

Question 12

what was a breadline

Answer 12

a long line of poor people waiting for free food

Question 13

What were shantytowns

Answer 13

communities of homeless people who lived on public land

Question 14

what were young men and boys who rode railways from one place to another in search of a better life called

Answer 14

hoboes

Question 15

What caused the Dust Bowl

Answer 15

A massive drought that turned uncultivated land into dust that blew across hundreds of miles

Question 16

What did many Dust Bowl farmers do when they lost their land to the banks

Answer 16

They headed west to California

Question 17

What were “Okies”

Answer 17

farmers from Oklahoma who had lost their land and headed west

Question 18

Why did the entertainment industry grow during the Great Depression

Answer 18

People wanted an escape from troubles

Question 19

What great literary work depicted the life of a family of “Okies”

Answer 19

The Grapes of Wrath

Question 20

What new entertainment medium gained great popularity during the Great Depression

Answer 20

comic books

Question 21

How did President Hoover initially respond to the stock market crash

Answer 21

by being optimistic and downplaying the severity of the situation

Question 22

What principle did President Hoover originally cling to as the solution to the nation’s economic troubles

Answer 22

rugged individualism

Question 23

What was the purpose of the series of conferences President Hoover conducted in 1930 in response to the economy

Answer 23

to convince business leaders to retain workers and maintain wages

Question 23

What are “public works”

Answer 23

government-funded building projects

Question 24

What was the purpose of the National Credit Corporation

Answer 24

to increase the amount of currency in circulation

Question 25

What was a flaw of the Reconstruction Finance Corporation, created by President Hoover in 1932

Answer 25

It was too cautious and did not meet the demands of the failing economy

Question 26

How did the government respond to the call for direct relief to families

Answer 26

It passed the Emergency Relief and Construction Act

Question 27

What were “hunger marches”

Answer 27

protests organized by the Communist Party to demand higher taxes for the wealthy in order to feed the poor

Question 28

What was the Bonus Army

Answer 28

a group of 15,000 veterans who squatted in Washington, D.C., demanding early bonuses

Question 29

What happened when Hoover ordered the removal of the Bonus Army

Answer 29

Veterans were eventually chased from the Capitol by 700 soldiers