True/False
Indicate whether the
sentence or statement is true or false.
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1.
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(3 points) During the 1920’s a majority of
Americans invested in the Stock Market.
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2.
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(3 points) Buying on margin was a method of buying
stocks with mostly borrowed money.
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3.
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(3 points) The stock market crash caused the Great
Depression.
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4.
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(3 points) One cause of the Great Depression was
that, in response to workers' demands, wages rose faster than corporate earnings, causing
factories to go bankrupt.
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5.
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(3 points) The Hawley-Smoot Tariff hurt trade on
both sides of the Atlantic.
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6.
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(3 points) During the early 1930s, a terrible
drought struck the Great Plains further hurting farmers.
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7.
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(3 points) In “Cinderella Man” the boxer
that was portrayed was named Red Skeleton.
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8.
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(3 points) In response to the deepening Depression,
Herbert Hoover massively increased government spending.
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9.
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(3 points) Herbert Hoover pushed Congress to provide
federal government money for direct relief of impoverished families.
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10.
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(3 points) The Army finally expelled the Bonus Army
from Washington with tear gas and fixed bayonets.
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Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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11.
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(5 points) During the Great Depression, when a bank
collapsed,
a. | the government stepped in to run the bank. | b. | the government
covered the bank’s debts. | c. | the government repaid deposits on insured
accounts only. | d. | depositors lost their savings. |
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12.
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(5 points) The Federal Reserve contributed to the
Depression’s cause by
a. | keeping loan rates low. | c. | loaning to foreign
companies. | b. | raising loan rates. | d. | loaning to speculators. |
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13.
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(5 points) President Hoover hoped that public works
projects would
a. | solve the budget deficit. | b. | spur the construction
industry. | c. | provide jobs lost in the private sector (non government jobs). | d. | spur industry to
create more jobs. |
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14.
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(5 points) President Hoover opposed direct federal
relief to the unemployed because he believed that
a. | only state and city governments should dole out relief. | b. | the Depression would
end soon. | c. | charities could provide sufficient relief until the economy
improved. | d. | individuals should be responsible for taking care of
themselves. |
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15.
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(5 points) Thousands of World War I veterans came to
Washington in 1932 to lobby Congress to
a. | enact a bonus for war veterans. | b. | pass legislation giving veterans their promised
bonus early. | c. | provide public works jobs for unemployed veterans. | d. | provide military
jobs for unemployed veterans. |
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16.
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(5 points) The stock market crash weakened the
nation’s banks because
a. | banks could not give people back money they had deposited because it was invested in
stocks. . | b. | banks depended on income from the sale of their stock for operating
funds. | c. | investors no longer had money to deposit in banks. | d. | investors could no
longer afford to take out loans from banks. |
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17.
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(5 points) Most economists agree that a key cause of
the Depression was
a. | overconsumption. | c. | inflation. | b. | overproduction. | d. | deflation. |
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18.
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(5 points) When the Senate voted the new bonus bill
down, many veterans waiting outside the capitol building
a. | rioted and burned several public buildings. | b. | fixed bayonets on
their service rifles and prepared to fight. | c. | left peacefully. | d. | refused to leave,
remaining on the capitol steps until they were evicted by force. |
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“During the war we necessarily turned to the government to solve every
difficult economic problem. . . . When the war closed . . . we were challenged with a peace-time
choice between the American system of rugged individualism and a European philosophy of diametrically
opposed doctrines—doctrines of paternalism and state socialism.” —from American
Individualism
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19.
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(5 points)
According to the excerpt, what would
happen if the United States continued to rely on the government to solve economic problems?
a. | American individualism would increase. | b. | Europe would influence our foreign
policy. | c. | The war would not end. | d. | People would expect the government to always
solve problems. |
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20.
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(5 points) During the Depression, many unemployed
people
a. | lived in “Hoovervilles.” | c. | collected unemployment
insurance. | b. | lived in federal housing. | d. | moved to other countries. |
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Short Answer
Using complete sentences, neat handwriting, and proper
punctuation answer the following item.
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21.
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(10 points) | | Explain how farmers hoped that their actions described
in the graphic would ultimately help them? | | |
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Essay
Using complete sentences, neat handwriting, and proper
punctuation answer the following item.
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22.
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(10 points) Discuss three major causes of the Great
Depression.
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