At the end of the 1920s

1. At the end of the 1920s Farmers found relief from their economic struggles. The economy quickly improved. A cycle of layoffs and business failures began. Banks were forced to return peoples’ savings to them.

2. What caused stock prices to drop in the fall of 1929? Stock prices were set at the company’s worth. Not enough people were selling stocks. Stock prices were set below a company’s worth. Too many people were selling their stocks.

3. How did bankers try to save the stock market? By selling stocks at a reduced rate. By loaning people money to buy more stocks By buying large amounts of stocks in important industries By loaning businesses money to cover their losses

4. When people went to the banks to get out their savings… The banks loaned them more money. The banks had loaned the money, so they could not give it back. Banks borrowed money from businesses to give back the money. The government paid the people to cover the money that the banks had lost.

5. The Great Depression was… A natural part of the economic cycle. A time in which businesses thrived but banks and farmers suffered. Deeper and longer than any depression before it. Not predicted by economists.

6. Why did President Hoover believe that direct economic relief was not an answer to the depression? He thought it would hurt the American spirit. He thought the government should keep a balanced budget. He thought relief should come from state and local government plus individuals. All of the above.

7. Why did farmers leave the Dust Bowl states during the 1930s? Because they were unable to farm the land anymore. To join the Bonus Army in Washington, D.C. Because there were many jobs in California. To try farming in the north.

8. During the Great Depression, people who were able to keep their jobs found that … As prices dropped, their money actually bought less. As prices dropped, their money actually could buy more. As prices increased, their money actually bought more. As prices increased, they bought more goods.

9. Which of the following was not part of the New Deal? Tariffs on foreign goods A bank holiday and deposit insurance Job programs such as the Civilian Conservation Corps and Works Progress Administration All of the above

10. How were farmers assisted by the New Deal? The Social Security Act guaranteed them a pension when they retired. The Publics Works Administration hired them to build bridges and roads. The Wages and Hours Law set the lowest per hour wage and most work hours per week. The Agricultural Adjustment Act increased the prices for their products.

11. In the fall of 1929, the stock market…… Crashed

12. A ……….is a time when industries do not grow and many people are out of work. depression

13. President Hoover had federal troops drive the …………… out of Washington, D.C. Bonus Army

14. A …………… is made up of the many workers needed to run government programs. bureaucracy

15. Social Security taxes are used to provide people with a …………… when they retire. pension

16. It cleared areas of the Tennessee River so that farmers could ship their products to the Ohio River. TVA – Tennessee Valley Authority

17. It allowed money in banks to be insured by the federal government. FDIC – Federal Deposit Insurance Corporation

18. It worked for the prevention of forest fires, floods, and soil erosion and for plant, pest, and disease control. CCC – Civilian Conservation Corps

19. It established a tax to be paid by both employees and employers to pay pensions to people who retired. Social Security Act

20. It set the smallest amount a person had to be paid per hour and made it against the law to employ children under the age of 16. Fair Labor Standards Act

21. It allowed the government to watch over banks’ records and allowed only strong, stable banks to open again. Emergency Banking Act

22. People from this organization built more than 650,000 miles (1,046,045 km) of roads and highways. WPA - Works Progress Administration