The Great Depression & New Deal Test

• What was established in 1913 to restore confidence in the banking system?


  Federal Reserve System
• What was the relationship of supply to demand in the economy during the Great Depression?

  There was too much supply and little demand
• What were the causes of the Great Depression?

  1)Republican economic policies 2)stock market speculation 3)stock market crash and bank industry collapse 4)overproduction 5)decline of farming industry 6)unequal distribution of wealth
• How did Herbert Hoover react to the Great Depression?

  His belief in rugged individualism (that the people should help themselves) caused Hoover to do little to help at first. Only helped business/banks. He held charities responsible to help the people.
• How did Hoover's personal beliefs influence his reaction to the Great Depression?

  Rugged individualism led him to not do very much to help
• What were the causes of the Dust Bowl?

  Drought, lack of natural grasses, overproduction of land
• How did Californians react to the Dust Bowl refugees?

  LAPD sent them away and only ones who had money to support themselves were let in. (Competition with jobs)
• What was the purpose of the New Deal?(3 R's)

  Relief, Recovery, Reform
• What was the philosophy of the role of government in the New Deal?

  Used government resources to help solve social problems
• What was the most immediate goal of FDR's New Deal?

  To create jobs
• What New Deal program was designed to safeguard the stock market?


  Securities and Exchange Commission (SEC)
• What is the purpose of the Federal Deposit Insurance Corporation?

  To protect bank accounts of citizens. $5,000 ensured.
• Why did people regain confidence in the banking system?

  FDR closed banks for a week and only reopened the safe ones. Known as "Bank Holiday" to stop bank runs
• Why did the power of labor unions increase during the New Deal?

  Government supported union membership put out laws to secure this
• What organization was created during the Great Depression to represent unskilled industrial workers?

  Works Progress Administration (WPA)
• What is the purpose of social security?

  Provided pensions for retired workers. Provides unemployment compensation
• What do the purposes of the Tennessee Valley Authority, the Bonneville Dan and the California Central Valley Authority all have in common?

  To give job opportunities, to develop resources, helps the environment. Federal government getting involved to help different regions
• What was the goal of the government's farm policies during the New Deal?

  To lower production/supply. Set quotas on farmers
• What was the traditional government policy for dealing with the economy before the New Deal?

  Laissez-Faire (gov. Keeps out of economy)
• Who presented the greatest opposition to FDR's New Deal policies?


  Big business
• What was the main reason FDR tried to increase the number of justices on the Supreme Court?

  To get more of the supreme court to agree with the New Deal
• Why did some criticize the New Deal as unconstitutional?

  The federal gov. Was trying to get more involved
• What did the subjects of the books "Let Us Now Praise Famous Men" and "The Grapes of Wrath" have in common?

  Both were about farmers and how they were effected by the Dust Bowl
• Which government programs provided jobs for artists under the New Deal?

  WPA: Federal Art Project, Federal Theater Project, Federal Writers Project
• How did the New Deal change Americans' attitudes towards government's role in the economy?

  People expected gov. To be involved to help, but when they did they felt that they were being too controlling and too powerful
• Three R's of the New Deal

  Relief, Recovery, Reform
• liberal


  open to new behavior or opinions and willing to discard traditional values.
• conservative


  holding to traditional attitudes and values and cautious about change or innovation, typically in relation to politics or religion.
• radical ideology


  favors rapid, fundamental change in existing social, economic, or political order; may be willing to resort to extreme means, even violence or revolution to accomplish such change
• bank run

  widespread panic in which great numbers of people try to redeem their paper money
• rugged individualism


  Herbert Hoover's belief that people must be self-reliant and not depend upon the federal government for assistance.
• New Deal


  the historic period (1933-1940) in the U.S. during which President Franklin Roosevelt's economic policies were implemented
• bonus army


  Group of WWI vets. that marched to D.C. in 1932 to demand the immediate payment of their government war bonuses in cash
• fireside chat

  informal talks given by FDR over the radio; sat by White House fireplace; gained the confidence of the people
• buying on margin


  paying a small percentage of a stock's price as a down payment and borrowing the rest
• bear markets


  a prolonged period of falling stock prices, accompanied by widespread investor pessimism
• bull markets


  a prolonged period of rising stock prices, accompanied by widespread investor confidence