The Great Depression

Question 1

who became president in a landslide win over Alfred E. Smith in 1928?

Answer 1

Herbert Hoover

Question 2

Hoover was the ________ of __________ and Head of the ____ _________?

Answer 2

Secretary of Commerce and Head of the Food Administration.

Question 3

October 24th?

Answer 3

Black Thursday.

Question 4

October 29th?

Answer 4

Black Tuesday.

Question 5

What political party did Hoover belong to?

Answer 5

Republican

Question 6

A system for buying and selling stock in corporations?

Answer 6

Stock Market

Question 7

A long period of rising stocks?

Answer 7

Bull Market

Question 8

Caused by persistent and heavy demands by bank’s depositors, creditors, or customers to withdraw money?

Answer 8

A bank run

Question 9

How many banks in the U.S. went out of business during this time?

Answer 9

About one in four banks

Question 10

Act of buying stocks at great risk with the anticipation that prices will rise?

Answer 10

Speculation

Question 11

Buying stock by paying only a fraction of the stock price and borrowing the rest?

Answer 11

Margin

Question 12

Three cause of the Great Depression:

Answer 12

• Uneven Distribution of Income
• Loss of export sales
• Mistakes by the Federal Reserve

Question 13

Was also a factor leading to the onset of the Great Depression?

Answer 13

Overproduction

Question 14

What’s the Industrial Index?

Answer 14

Measure of the value of leading industrial companies

Question 15

How much money was lost during the Depression?

Answer 15

$30 billion

Question 16

What led to bank runs?

Answer 16

News of the bank failures.

Question 17

The market crash weakened the nation’s banks in two ways:

Answer 17

• By 1929 banks lent billions to bank speculations

- Many banks had invested depositors’ money in the stock market

Question 18

What raised the average tariff rate to the highest level in American history?

Answer 18

The Hawley-Smoot Tariff

Question 19

A ________ in exports hurt both American companies and farmers.

Answer 19

decrease

Question 20

What propelled the stock market?

Answer 20

Access to easy money

Question 21

Federal Reserve Board did what throughout the 1920’s?

Answer 21

Kept its rates low.

Question 22

The board’s failure to raise interest rates significantly helped cause the depression in two ways:

Answer 22

• By keeping rates low, the Board encouraged member banks to make risky loans.
• The low interest rates led business leaders to think that the economy was still expanding.

Question 23

A sustained,long-term downturn in economic activity in one or more economics?

Answer 23

Depression.

Question 24

Slowdown in economic activity over the course of a normal business cycle?

Answer 24

Recession.