1. The Stock Market Crash, the Great Depression, and the New Deal

2. What was the Great Depression? Period of severe economic hardship that lasted from 1929 to World War IIPeriod of severe economic hardship that lasted from 1929 to World War II

3. What were three causes of the Great Depression? Overspeculation in stocksOverspeculation in stocks Collapse of the banking systemCollapse of the banking system Hawley-Smoot TariffHawley-Smoot Tariff

4. What is speculation ? Buying something at a low price in the hope of selling it later at a profitBuying something at a low price in the hope of selling it later at a profit

5. What is the largest stock market in the United States? The New York Stock ExchangeThe New York Stock Exchange

6. What does it mean to buy stock on margin? Buy stock on creditBuy stock on credit

7. What event triggered the Great Depression? The Stock Market CrashThe Stock Market Crash

8. What functions as the central bank of the United States? The Federal Reserve SystemThe Federal Reserve System

9. What acts as a banker’s bank? The Federal ReserveThe Federal Reserve

10. What controls the nation’s money supply? The Federal ReserveThe Federal Reserve

11. What is inflation? When prices increase and the dollar buys lessWhen prices increase and the dollar buys less

12. What does the Federal Reserve do to stop inflation? Raises interest ratesRaises interest rates

13. The Federal Reserve’s power to set ________ ______ enables it to control the nation’s money supply? Interest ratesInterest rates

14. What does the Federal Reserve do if it believes the economy is overheating and causing inflation? Raises interest ratesRaises interest rates

15. What does the Federal Reserve do if it believes the economy is slowing down? Lowers interest ratesLowers interest rates

16. What is a protective tariff? A tax on imports that is so high that Americans cannot afford to buy foreign goodsA tax on imports that is so high that Americans cannot afford to buy foreign goods

17. What was the Hawley- Smoot Tariff? Protective tariffProtective tariff The highest tariff rates in historyThe highest tariff rates in history

18. The Hawley-Smoot Tariff was supposed to help American business. Why did this tariff law hurt the American economy?

19. Foreign countries retaliated by passing high tariffs of their own.Foreign countries retaliated by passing high tariffs of their own. This meant foreigners could no longer afford to buy American- made goods.This meant foreigners could no longer afford to buy American- made goods. The decrease in foreign sales was greater than the increase in the sale of American-made goods within the United States.The decrease in foreign sales was greater than the increase in the sale of American-made goods within the United States.

20. What were five effects of the Great Depression on the United States?

21. Unemployment increasedUnemployment increased Banks closedBanks closed Consumer demand for goods droppedConsumer demand for goods dropped Political unrest increasedPolitical unrest increased Farm foreclosures increasedFarm foreclosures increased

22. What was the unemployment rate among Americans by 1932? 25%25%

23. Who was president when the Great Depression began? Herbert HooverHerbert Hoover

24. What was Herbert Hoover’s political party? RepublicanRepublican

25. What president started the New Deal? Franklin D. RooseveltFranklin D. Roosevelt

26. What was Franklin Roosevelt’s political party? DemocratDemocrat

27. What was President Franklin Roosevelt’s program to end the Great Depression? The New DealThe New Deal

28. Who said, “The only thing we have to fear is fear itself?” RooseveltFranklin D. Roosevelt

29. What the three R’s of the New Deal? ReliefRelief RecoveryRecovery ReformReform

30. What is reform? Change for the betterChange for the better

31. What was the purpose of the New Deal “relief” programs? Ease the suffering of the unemployedEase the suffering of the unemployed

32. Give an example of a New Deal “relief” program. WPAWPA

33. What did WPA do? Paid people to work on public works projectsPaid people to work on public works projects

34. What are public works projects? Construction projects paid for by the governmentConstruction projects paid for by the government Benefit everyoneBenefit everyone

35. Give examples of public works projects.

36. RoadsRoads SchoolsSchools BridgesBridges Post officesPost offices ParksParks LibrariesLibraries DamsDams

37. What was the purpose of the New Deal “recovery” programs? Help Business RecoverHelp Business Recover

38. Give an example of a New Deal “recovery” program. AAAAAA

39. For what did AAA stand? Agricultural Adjustment AdministrationAgricultural Adjustment Administration

40. What did AAA do? Paid farmers not to raise crops and livestockPaid farmers not to raise crops and livestock By limiting supply, tried to raise livestock and crop pricesBy limiting supply, tried to raise livestock and crop prices

41. What was the purpose of New Deal “reform” programs? Bring about change for the better in American societyBring about change for the better in American society

42. Give two examples of New Deal “reform” programs. FDICFDIC Social SecuritySocial Security

43. For what does FDIC stand? Federal Deposit Insurance CorporationFederal Deposit Insurance Corporation

44. What does FDIC do? Deposits at FDIC-insured banks are now insured up to at least $250,000 per depositor through December 31, 2013Deposits at FDIC-insured banks are now insured up to at least $250,000 per depositor through December 31, 2013

45. What did the Social Security Act provide? Unemployment insuranceUnemployment insurance Old-age pensionsOld-age pensions

46. What brought an end to the Great Depression? World War IIWorld War II

47. What is another name for organized labor? UnionsUnions

48. Were labor unions active during the Great Depression? YesYes

49. What three rights did workers gain during the New Deal? Right to form a UnionRight to form a Union Right to StrikeRight to Strike Minimum WageMinimum Wage

50. Since the New Deal, who do Americans hold responsible for bringing prosperity to the U.S. economy? The federal government, especially the PresidentThe federal government, especially the President