The Great Depression and The New Deal

Question 1

Define the Great Depression

Answer 1

The economic crisis beginning with the stock market crash of 1929 and continuing through the 1930s

Question 2

How credit worked and give an example of an item purchased on credit

Answer 2

buying on credit was the “item” that lead to the great depression.
people started buying luxury items
people borrowed money to invest in stocks
thought they could repay the loan when they sold their stocl or profit
b/c of so much buying; people were making ALOT of money
stores sold LOTS of goods; that made value of stock rise
at some pojnt; people could no longer buy things b/c they had spent all their money into paying off their credit
inflamation started; that lead && started the great depression

Question 3

margin buying

Answer 3

buying now and paying later for something

Question 4

speculation

Answer 4

investing with hopes of turning a profit

Question 5

bank run

Answer 5

when people start to lose faith in their banks so they try to withdraw their money

Question 6

bank panic

Answer 6

when many people start withdrawing their money from the banks because they have lost confidence in it

Question 7

Dow Jones Industrial Average

Answer 7

price weighted average of the stocks in the market

Question 8

black tuesday

Answer 8

The day the economy severely crashed

over speculation of the stock market and margin buying

Question 9

The Hundred Days

Answer 9

When FDR introduced many new acts and administrations to the country after creating a bank holiday in hopes of repairing the nation’s economy

Question 10

The New Deal

Answer 10

The set of federal programs launched by FDR

Question 11

The Dust Bowl

Answer 11

• Great Plains
• Caused by overproduction of farmland and droughts
• Caused death, farmers lost their farms, crops weren’t produced

Question 12

Herbert Hoover

Answer 12

President from 1929-1933

• Believed the crash was part of the natural cycle of a capitalist government
• Directed little government action to do anything

Question 13

FDR

Answer 13

• Elected in 1932

- Created the New Deal

Question 14

Agricultural Adjustment Act

Answer 14

Provided aid to struggling farmers

-Paid farmers to destroy crops and livestock

Question 15

Civilian Conservation Corps

Answer 15

• public work relief program

- Promoted environmental conservation

Question 16

Works Progress Administration

Answer 16

• Job program

- built and/or renovated 125,000 public buildings, as well as many roads, bridges, parks, and airports

Question 17

Social Security Act

Answer 17

• provided aid to the elderly

- 2% tax

Question 18

Federal Deposit Insurance Corporation

Answer 18

-federal regulation of banking practices by setting up the FDIC to protect bank depositors’ money if the banks failed

Question 19

Securities and Exchange Commision

Answer 19

-Federal regulation of the stock market by passing a series of laws and forming the SEC to pass these laws

Question 20

Tennessee Valley Authority

Answer 20

The TVA implemented a far-reaching plan to bring electrical power and economic recovery to impoverished farmers

Question 21

Federal Emergency Relief Administration

Answer 21

Congress gave direct relief by establish the FERA to provide $500 million in federal grants to state and local relief agencies

Question 22

Political Ideologies

Answer 22

Liberalism-a political orientation that favors social progress by reform and by changing laws rather than by revolution
Conservatism-a political or theological orientation advocating the preservation of the best in society and opposing radical changes
-Radicalism-the political orientation of those who favor revolutionary change in government and society

Question 23

Election of 1928

Answer 23

Hoover Won:

• Economy was booming under 8 years of Republican leadership and people didn’t want that to change
• Al smith lost- people didn’t like his catholic views

Question 24

Election of 1932

Answer 24

FDR won

-People blamed Hoover for the effects of the depression