Take this challenge on The Great Depression Quick Facts : 10 Quiz and check how much you can score. The Great Depression was a serious worldwide economic anxiety that happened primarily throughout the 1930s, coming from the United States. The timing of the Great Depression differed across nations; in the majority of nations it started in 1929 and also lasted till 1941. It was the lengthiest, inmost, as well as many widespread anxiety of the 20th century. In the 21st century, the Great Depression is generally used as an instance of just how much the globe’s economic climate could decline. Click here for another Quiz on The 1920s : 10 Facts
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What was the risky investing practice that ultimately led to the stock market crash of 1929?Correct
In the years leading up to 1929 the stock market got caught up in a speculative bubble, and investors wanted to maximize their potential to get in on the profits. In many cases they did not have the funds to actually pay for the large quantities of stocks they were trying to purchase; this led to the widespread practice of buying on margin — paying a portion of a stock’s purchase price with the promise of paying off the rest with future profits. Once the market began to slow, profits shrank, debts from margin purchases could not be repaid, and the entire system began to fall apart.Incorrect
The Great Depression was caused by what major event?Correct
Which of the following best describes the distribution of wealth amongst the American public in the 1920s.Correct
The Roaring Twenties were a great time for the richest Americans. Tax rates were low, investment opportunities were plentiful, and the stock market boomed. Since less than one percent of Americans owned any stock, the incredible returns in the stock market were narrowly focused. During this time the share of America’s wealth controlled by the rich increased rapidly, to perhaps the highest level in American history.
Urban workers and the middle class also did well in the 1920s. Wages grew and amazing new products like automobiles, washing machines, and radios became much more affordable as manufacturers mastered the assembly line pioneered by Henry Ford.
However, nearly half of the population still lived in rural areas. Agricultural prices had boomed during the war, but afterwards there was glut of products and prices crashed. Life for rural Americans was very difficult and they struggled to get by.Incorrect
When the stock market indicates an increase and then something happens to a company, what possible events could happen?Correct
Which of the following was a cause of the severe drop in employment in the late 1920s and early 1930s?Correct
As demand for American products declined, so did the need to continue mass producing supply. In response, employers were forced to downsize their once thriving industrial operations to simply try to remain in business. As a result, there were far fewer opportunities for employment.Incorrect
What actions did President Herbert Hoover take in an effort to get the country out of the Great Depression?Correct
Hoover pursued numerous policies in an effort to get the country out of the depression, though he did try keep the government from getting directly involved in commercial activities. Some of his policies were definitely counterproductive, such as the Smoot-Hawley Tariff, which crippled international trade.
There is wide agreement that Hoover’s policies were ineffective, but strong disagreement about what course of action he should have taken. Some argue that his policies only deepened the recession and that the economy would have been better off without these actions. Others argue that Hoover did not do nearly enough to combat the recession, and that his actions were far too limited to halt the downward spiral of the economy.Incorrect
What was the main issue raised by the World War I veterans that organized and called themselves the “Bonus Army”?Correct
The Bonus Army marched on Washington to demand the bonuses they were promised for participating in World War I. The $1,000 bonus was not supposed to be issued until 1945, but so many of the veterans were negatively impacted by the Great Depression that they organized to try and get the payments sooner. When 2,000 of the 20,000 members remained in Washington D.C., still demanding payment, President Hoover called in the army to clear them out by force.Incorrect
What was the role of Franklin D. Roosevelt’s “Brain Trust”?Correct
FDR put together a group of economists, lawyers, and social workers and tasked them with generating progressive solutions to the economic and institutional issues plaguing America. This “Brain Trust” would also help FDR with his presidential campaign in 1932.Incorrect
What was the result of the election of 1932?Correct
Hoover’s inability to help the nation out of the Great Depression ruined his chances at reelection. Roosevelt won the electoral votes from 44 of the 50 states. His landslide victory signaled the public’s desire for serious change.Incorrect
How was FDR able to renew American confidence in the banking system?Correct
FDR was able to rebuild the American public’s faith in the banking system through a blend of sound economic policy and direct, honest messaging. Following the weak attempts at reform made by Hoover, the American public was willing to listen to and embrace FDR’s approach to resolving the bank crisis.Incorrect