Chapter 21 Quiz

Question 1

Causes of the Great Depression

Answer 1

-End of World War One and Unequal Wealth Distribution

-Declining Exports – From agriculture to industry

-Overproduction – coal, oil, corn and wheat

-Badly managed banks

-High tariffs and taxes

Question 2

Corporate America

Answer 2

• 200 largest corporations had 1/2 of all corporate wealth
• 0.1% of wealthiest Americans had as much wealth as bottom 42%

Question 3

Debt Defaults

Answer 3

• Germany produced more Marks to pay its reparations- worthless money
  -Used by Britain and France to pay war debt to the US

Question 4

Economic crash

Answer 4

Stock market crash 10/29/1929 – 12% decline of value

1929 – 1932: Market lost 89% of total value

Question 5

Herbert Hoover

Answer 5

Republican
1928 – 1932

Political philosophy:

Not government’s responsibility to engage in social welfare to help
American people

Question 6

Franklin Delano Roosevelt (FDR)

Answer 6

Democrat
1932 – 1945

Political Philosophy

Government’s responsibility is to help the American people

Question 7

The New Deal

Answer 7

FDR Political philosophy
proposed during election

Unemployment Relief
Conservation
Social Welfare

Campaign Slogan- “The Forgotten Man” – people at the bottom of the economic
pyramid

Question 8

“Hundred Days”

Answer 8

First three months of FDR presidency- used momentum from election to push New Deal

Question 9

Emergency Banking Act

Answer 9

Assistance to stable and well managed banks as well as reorganized banks

Increased presidential powers during the banking crisis,

permitted the emergency issuance of Federal Reserve Bank Notes.

Question 10

Federal Deposit Insurance Corporation (FDIC)

Answer 10

Guaranteed Bank Deposits up to $2,500

Question 11

Glass-Steagall Act

Answer 11

Separated investment and banking to deter risky speculation

Banks no longer engage in risky ventures and lose patrons savings

Question 12

National Industrial Recovery Act (NRA)

Answer 12

Guaranteed rights of workers to unionize and engage in collective bargaining

Blue Eagle symbol
Slogan “We Do Our Part”

Question 13

Tennessee Valley Authority TVA

Answer 13

Development of Tennessee River to provide jobs, water and power

Question 14

Civilian Conservation Corps CCC

Answer 14

Unemployment relief in parks, national forests and elsewhere

Question 15

Securities and Exchange Commission

Answer 15

Regulate the stock market

Question 16

Agricultural Adjustment Administration AAA

Answer 16

Subsidies to restrict production and restore farmers purchasing power

Question 17

Social Security Administration SSA

Answer 17

Unemployment compensation

Old age pensions

Aid for needy mothers, children, Aid for blind / disabled

Question 18

Supreme Court Support

Answer 18

Against most of New Deal:
NRA unconstitutional – government cannot tell business how to run itself –
that is government infringement on liberty

Support for SSA and minimum wage

Question 19

Democratic Party Split

Answer 19

Democratic Party split between supporters of FDR and supporters of the Court
6. FDR’s Solution
a. Pack the Court
b. Expand the Court from 9 to15 judges – new judges are loyal FDR supporters
c. The scheme further split the Democratic Party