The Great Depression

Question 1

Financial failure caused by an inability to pay one’s debt.

Answer 1

Bankruptcy

Question 2

Spending funds in excess of income, especially by the government.

Answer 2

Deficit Spending

Question 3

The collecting of a tax against the amount of wages and salaries paid workers.

Answer 3

Payroll tax

Question 4

When companies make too much of a product they are unable to sell.

Answer 4

Overproduction

Question 5

Sum of money paid regularly as a retirement benefit.

Answer 5

Pension

Question 6

Something promised as a security for the repayment of a loan. It has to be given up in the event of a default.

Answer 6

Collateral

Question 7

Loan in which a house is used as collateral.

Answer 7

Mortgage

Question 8

What is the difference between a recession and a depression?

Answer 8

A recession is a period of negative economic growth. A depression is a recession that is much more severe and long lasting.

Question 9

What does “Laissez Faire” mean when referring to the government and economics?

Answer 9

Government does not intervene in the economy

Question 10

What was “Black Tuesday?” What date did it occur on?

Answer 10

It was the day the stock market crashed, and it occurred on October 29, 1929.

Question 11

The day after Roosevelt was inaugurated, what action did he take to resolve the bank crisis?

Answer 11

Roosevelt ordered all banks closed for four days. Congress passed the Emergency Banking Relief Act to help banks reorganize. Those that passed government inspection could then reopen.

Question 12

What was the Reconstruction Finance Corporation? Which President is responsible for starting the RFC?

Answer 12

It lent money to businesses, and provided direct unemployment relief through the creation of public work projects. President Hoover was responsible for it. It was supposed to help end the Great Depression.

Question 13

What were “Hoovervilles?”

Answer 13

Makeshift villages the homeless gathered in.

Question 14

What were the causes of the Great Depression? (list at least 3)

Answer 14

Overproduction, stock market crash, and the banking and credit crisis

Question 15

What were the effects of the Great Depression? (list at least 3)

Answer 15

Unemployment, bankruptcy, poverty

Question 16

What was Hoover’s approach to ending the Great Depression

Answer 16

Public works, and the RFC.

Question 17

What was Roosevelt’s approach to ending the Great Depression

Answer 17

Government creation of programs to assist the jobless and reforming the American economy.

Question 18

What were the goals of the New Deal?

Answer 18

Relief, recovery, and reform.

Question 19

What was the Bonus Army? How did Hoover handle the Bonus Army? What was the result of Hoover’s actions?

Answer 19

The Bonus Army was a group of WW1 veterans who demanded the bonus Congress had promised them in 1945 when the Great Depression started. Hoover called the U.S. troops to burn their camp. The public was shocked he would attack war veterans, so this turned their opinion firmly against him.

Question 20

What was the Court Packing Plan? Why did Roosevelt try this?

Answer 20

The Court Packing Plan was when Roosevelt asked Congress to change the number of seats from 9 to 15. He tried it so he could fill the seats with people who supported the New Deal.

Question 21

What does WPA stand for and what did it do?

Answer 21

Works Progress Administration. It built libraries, schools, hospitals, and roads as well as hiring artists and writers.

Question 22

What does CCC stand for and what did it do?

Answer 22

It stands for Civilian Conservation Corps. It improved public lands by planting trees, clearing trails, fighting forest fires, etc.

Question 23

What does FDIC stand for and what did it do

Answer 23

It stands for Federal Deposit Insurance Corporation. It insured money deposited in banks.

Question 24

What did the Social Security Act do?

Answer 24

Provided insurance for unemployment and retirement.

Question 25

What ended the Great Depression?

Answer 25

World War 2, because the unemployed suddenly had jobs with enlisting for the army.