Chapter 10 The Great Depression

Why did Americans turn to the federal government for aid after the first year or so of the Depression ?

• Americans held the government responsible for the Depression

• Private Charities could not meet the huge demand for relief

• Americans were too proud to accept charity from local organizations

• Hoover promised to deliver federal aid to help end the Depression

The banking system collapsed as an effect of the stock market crash because banks

• had to pay all the businesses insured against bankruptcy

• ran out of cash to pay all the investors who needed ready money after the crash

• had lent huge sums to foreign banks that could not repay the loans after the crash

• were already in a crisis, and the stock market crash made them run out of money

How did the stock market crash cause a business crisis ?

• businesses lost their saving in failed banks and had to close or cut back

• Businesses that had lent money to foreign countries were not paid back

• Businesses could afford supplies but had no workers to make the goods

• Businesses were forced to cut back production but could not fire workers

The Bonus Army consisted of

• troops led by General MacArthur who distributed military bonuses to US war veterans

• veterans of WW1 and their families who went to Washington DC to demand bonuses be paid early

• troops led by General MacArthur who scattered dwellers in a Washington DC Shanty town using tanks and teargas

• veterans of WW1 and thier families who sabotaged President Hoover's reelection campaign

Who did President Hoover believe should lead the relief effort during the Great Depression ?

• the federal government

• foreign allies

• state and local governments

• private individuals and institutions

What helped Franklin Roosevelt beat Herbert Hoover in the 1932 election ?

• Roosevelt was dedicated to women's liberation

• As governor of New York Roosevelt had taken active steps to provide aid for citizens

• Roosevelt was a more well- known candidate

• As presidential candidate Roosevelt promised to prosecute those responsible for the stock market crash

Americans regained faith in the banks after President Roosevelt signed the Emergency Banking Relief Act into law because the act

• allowed only healthy banks to remain open, so people believed that banks that passed the act's requirements really were sound

• gave people the right to withdraw all their money at any time without a penalty or waiting period

• authorized the federal government to immediately deposit $ 1 billion in banks to guarantee peoples' deposits

• required the federal government to pay back in full the customers of any bank that failed

The Tennessee Valley Authority was a government project to

• help poor farmers in the Tennessee River Valley refinance their mortgages and keep their farms

• build dams and generators, bringing electricity and jobs to poor communities in the Tennessee River Valley

• eliminate unfair business practices and competition between powerful mining companies in the Tennessee River Valley

• put more than 4 million Americans to work building roads and airports in the poor and undeveloped Tennessee River Valley

Critics who thought the New Deal went too far claimed which of the following?

• The government ought to nationalize the country's wealth and natural resources

• The new laws gave the president too much authority

• The enormous expansion of the federal government was a step toward communism

• The high cost of the new programs would lead to higher taxes on the poor

Which New Deal program marked the first time the federal government took direct responsibility for its citizens' economic well-being?

• The Farm Credit Act

• The Federal Deposit Insurance Corporation

• The Social Security Act

• The Emergency Banking Relief Act