Question 1

Which of the following was true of Hoovervilles?

Accepted Answer

Hoovervilles were shantytowns built by homeless Americans during the Great Depression. They were named after President Herbert Hoover, who was widely blamed for the economic downturn.

Question 2

Shirley Temple symbolized the fact that Hollywood was accurately portraying the real woes that most Americans faced in the 1930s.

Accepted Answer

Shirley Temple was often portrayed in roles that offered escapism from the harsh realities of the Great Depression, rather than accurately depicting the struggles most Americans faced during the 1930s.

Question 3

During the Great Depression, unlike the United States, European nations witnessed an increase in industrial production.

Accepted Answer

During the Great Depression, European nations, like the United States, experienced a significant decline in industrial production, as the economic downturn was global in nature, affecting economies worldwide.

Question 4

Which of the following was a cause of the Great Depression?

Accepted Answer

The U.S. stock market crash in 1929 is widely recognized as a major cause of the Great Depression. This event led to a catastrophic loss of confidence and a severe contraction in the economy, contributing significantly to the economic downturn that followed.

Question 5

Which of the following refers to a form of credit given in the 1900s that allowed a stock buyer to put down around 10 to 50 percent of a stock's price and borrow the rest of the money in order to make the full payment?

Accepted Answer

A call loan was a form of credit used in the early 20th century, particularly during the 1920s leading up to the stock market crash of 1929, which allowed investors to borrow money to purchase stocks, paying only a fraction of the stock's price upfront and borrowing the rest. This practice contributed to the speculative bubble that preceded the crash.

Question 6

Which of the following was one of the beliefs of President Hoover?

Accepted Answer

Hoover believed in protecting American industries from foreign competition, which led to the enactment of the Smoot-Hawley Tariff Act, raising tariffs on imported goods to protect domestic products.

Question 7

Which of the following was a reason for the displeasure of the European countries over the signing of the Hawley-Smoot Tariff?

Accepted Answer

The Hawley-Smoot Tariff, by significantly raising U.S. tariffs on imported goods, made it harder for European countries to sell their products in the U.S. market. This, in turn, reduced their earnings, making it more difficult for them to repay debts incurred during World War I.

Question 8

By the 1950s, less than 5 percent of all American workers belonged to unions.

Accepted Answer

By the 1950s, union membership in the United States had reached its peak, with about one-third of all American workers belonging to unions, not less than 5 percent.

Question 9

What was the intent behind the establishment of the Reconstruction Finance Corporation by Herbert Hoover in 1932?

Accepted Answer

The Reconstruction Finance Corporation was established by Herbert Hoover in 1932 with the primary intent of providing financial support to banks, railroads, and other large businesses. The aim was to stabilize these institutions to help curtail the high unemployment rate and stimulate economic recovery during the Great Depression.

Question 10

The Columbia Broadcasting system created the first nationwide radio network.

Accepted Answer

The first nationwide radio network in the United States was created by the National Broadcasting Company (NBC), not the Columbia Broadcasting System (CBS). NBC was formed in 1926, while CBS was established in 1927.

Question 11

The Consolidated Tenants League organized strikes against landlords who charged too much.

Accepted Answer

The Consolidated Tenants League, like other tenant unions or organizations, would have organized strikes or rent withholdings as a method to protest and fight against landlords who charged excessive rents or failed to maintain livable conditions. This is a common tactic used by tenant organizations to leverage collective bargaining power against landlords.

Question 12

The New Deal measures were designed to regulate the economy.

Accepted Answer

The New Deal, implemented by President Franklin D. Roosevelt during the Great Depression, included measures aimed at economic recovery, which involved regulating financial institutions, providing relief to the unemployed, and stimulating economic growth through public works projects.

Question 13

Ernest was a stockbroker in the United States in the 1920s. He would buy stocks worth $5000 by investing $800 and taking a loan from a bank to make the rest of the payment. However, when his stock prices would plummet, he would repay the loan on demand by the bank. Which of the following types of loans does this scenario illustrate?

Accepted Answer

This scenario illustrates a "call loan," which is a type of loan where the lender can demand full repayment at any time. In the context of stock trading during the 1920s, brokers like Ernest would often use call loans to finance the purchase of stocks, with the understanding that the loan could be called in by the bank at any time, especially if the value of the collateral (the purchased stocks) fell.

Question 14

The Agricultural Adjustment Administration offered farmers cash subsidies to plow up crops already planted.

Accepted Answer

The answer of The Agricultural Adjustment Administration offered farmers cash...

Question 15

Which of the following was an indirect consequence of the Great Depression in the United States?

Accepted Answer

During the Great Depression, economic hardship led to a decrease in the birthrate as families were uncertain about their financial future and thus less likely to have children.

Question 16

When the U.S. stock market finally stabilized in 1932, stocks had:

Accepted Answer

By the time the U.S. stock market stabilized in 1932, it had lost almost 90 percent of its original value from its peak in 1929, marking one of the greatest losses in U.S. stock market history.

Question 17

The Indian Reorganization Act of 1934 provided special federal appropriations for schools and other forms of Indian self-government.

Accepted Answer

The Indian Reorganization Act of 1934, also known as the Wheeler-Howard Act, was aimed at decreasing federal control of American Indian affairs and increasing Indian self-governance and responsibility. It provided for the formation of a new system of self-government and for financial appropriations for educational and other purposes to support this transition.

Question 18

Hoovervilles existed in virtually all of the nation's cities.

Accepted Answer

Hoovervilles were makeshift shantytowns that sprang up across the United States during the Great Depression, named derisively after President Herbert Hoover, and they indeed existed in virtually all of the nation's cities as people who lost their homes sought shelter.

Question 19

Which of the following bills, passed in 1930, raised American tariffs on foreign agricultural and manufactured goods by as much as 50 percent?

Accepted Answer

The Hawley-Smoot Tariff, passed in 1930, significantly raised U.S. tariffs on both agricultural and manufactured goods, with increases up to 50 percent, aiming to protect American farmers and manufacturers during the Great Depression but ultimately worsening it by reducing international trade.

Question 20

During the 1930s, President Hoover's beliefs accorded with those of the Republicans of the era.

Accepted Answer

President Hoover, a Republican, held beliefs that aligned with the conservative economic policies and small government principles typical of the Republican Party during the 1930s.

Quiz 22: The Great Depression and the New Deal