The Great Depression

What caused stock prices to begin to fall in the late 1920's?

• stockbrokers stopped margin loans

• company earnings declined.

• several companies went bankrupt.

• investors began to sell their stock.

Which of the following is true: When banks collapsed during the depression

• the government stepped in to run the bank

• the government covered the bank’s debts.

• the government repaid deposits on insured accounts only

• depositors lost their savings.

During the Depression what led farmers to begin losing their crops?

• the soil lost its fertility.

• frequent rains eroded the soil.

• a fungus depleted the soil of nutrients.

• a terrible drought dried the soil.

What did President Hoover think Public Works would do?

• solve the budget deficit

• spur the construction industry.

• provide jobs lost in the private sector.

• help reduce farm foreclosures.

in 1932 when WWI veterans marched on Washington D.C. what did they want Congress to do?

• enact a bonus for war veterans and their families.

• pass legislation giving veterans their promised bonus early.

• provide public works jobs for unemployed veterans.

• provide military jobs for unemployed veterans.

Why didn't Hoover believe in direct relief to the people?

• only state and city governments should give out relief.

• federal relief would shorten the Depression.

• charities could provide sufficient relief until the economy improved

• individuals should be responsible for taking care of themselves.

What helped Hoover win such a one sided election in 1928?

• the prosperity of the 1920s.

• his tax relief plan.

• his promise to end Prohibition.

• his plan to support farm prices.

Which of the following is true about stock prices during the 1920's?

• They did not change much.

• They generally reflected the stocks’ true value.

• They had little to do with the economy.

• They were too high for most people to afford

How did the stock market crash weaken American banks?

• banks had invested their deposits in the stock market.

• banks depended on their stock for operating funds.

• investors no longer had money to deposit in banks.

• investors could no longer afford to take out loans from banks.

many Economists would say _______ was a main cause of the depression

• overconsumption.

• overproduction.

• inflation.

• deflation