Unit 5 Test: The Roaring Twenties And The Great Depression

Question 1

Flappers

Answer 1

Young women with new styles. Ex. cutting hair short, and wear makeup, smoking, and drinking

Question 2

Mass entertainment

Answer 2

Movies, music, sports games all being shown on radios and later on TV

Question 3

New technologies

Answer 3

Electricity, refrigerators, vacuums, automobiles. Etc.

Question 4

Credit/ installment buying

Answer 4

On arrangement in which the consumer buys something now with borrowed money and pays off loan

Question 5

Prohibition

Answer 5

In 1929 the 18th amendment was past banning alcohol, but cops often look the other way and alcohol was still big

Question 6

Stocks

Answer 6

Shares by which ownership of a company is divided in

Question 7

Supply and Demand

Answer 7

Supply: how much of a good or service is available
Demand: the amount of goods or services customers want

Question 8

Interest (the good and bad kind)

Answer 8

Good interest - when you receive interest on your savings account
Bad interest-when. You have to pay money when you take out a loan

Question 9

Long Bull Market

Answer 9

The market was fueled by speculation and everyone buying because they were convinced stocks would go up

Question 10

Buying on margin

Answer 10

I don’t know. I’m still working on this one

Question 11

What causes the stock market to rise?

Answer 11

When many people buy a stock, the price goes up or when many people want a certain good or service

Question 12

How does a bank make money so that they can give you interest on your savings account?

Answer 12

They make money when someone wants a loan, they charge interest off those loans

Question 13

What could cause a bank to fail?

Answer 13

When everyone wants to withdraw their money

Question 14

Why did the Stock Market crash so terribly in 1929? (Black Tuesday)

Answer 14

• banks charge 20% interest on loans
• wealthy investors inside trade
• newspapers dishonesty, paid off
• easy credit left many in debt

Question 15

Unemployment

Answer 15

By 1933 around 85,000 businesses failed causing around 25% unemployment rate

Question 16

Hoovervilles/homelessness

Answer 16

People couldn’t afford home so they made shelters from whatever they could find. Communities of these were called Hoovervilles

Question 17

Bank failures

Answer 17

With everyone taking out money from the banks, the banks can keep up and went out of business

Question 18

Businesses going bankrupt

Answer 18

With failed banks, businesses couldn’t get loans and went bankrupt

Question 19

The Dust Bowl

Answer 19

• the result of bad weather -exploitation of the land -false sense of security due to overproduction
  -wrong farming methods

Question 20

Deficit spending

Answer 20

Spending money that you don’t have (borrowed money)

Question 21

Keynesian economics

Answer 21

The economist idea that says that the government should spend to kickstart the economy (go in debt if needed)

Question 22

The 100 days

Answer 22

President FDR pushed Congress to pass 15 major bills in the first 100 days of being in office. He also tried many different executive options.

Question 23

Social security

Answer 23

At 18, money comes out of your paycheck and comes back to you when you’re older

Question 24

Controlling agricultural prices

Answer 24

The government bought farmers’ goods and sold them on the market for cheaper so people don’t starve

Question 25

Relief programs and works project programs

Answer 25

Different federations and corporations and designed by the government to help people find work and not starve

Question 26

FDIC Federal Deposit Insurance Corporation

Answer 26

The corporations your money if you go bankrupt

Question 27

SEC Security Exchange Commission

Answer 27

The monitor the stock market and make sure no one is cheating

Question 28

The Wagner act/ labor unions during the Great depression

Answer 28

Labor unions were greatly helped, they got 40 hour work weeks, the right to form unions, and the right to go on strike.

Question 29

Second great depression

Answer 29

When FDR stopped all of his programs, and the economy plummeted again

Question 30

FDR and the increasing role of the federal government

Answer 30

In 1932, FDR took office and created many new policies and federations under The New Deal. FDR tried many new things.

Question 31

What caused the Great depression? You should explain at least three key factors. Then, explain what the government under Republican President Hoover and then Democratic President Roosevelt tried to do it and the great depression. You need to give specific examples. (Try for at least four or five) and tell whether you think those attempts were successful or not. In your conclusion, explain whether you think the government was overall successful or not in combating the Great depression and why.

Answer 31

1. In the 20s there were problems due to, overproduction from war and world war I debts. 2. Stock market crash 3. Bank failures (because of borrowed money) 4. People lose savings, businesses can't get loans 5. People get fired 6. Consumers don't spend money President Hoover - encouraged banks to cooperate with each other - 1932 created government agency to save failing banks FAIL President Franklin D Roosevelt - first 100 days in Congress past 15 major bills -WPA ( work progress administration) created 8 million jobs (building roads, houses, etc. and painting murals MORE SUCESSFUL They were not hugely successful until world war II. World war II created jobs and profit.