CH 14 EXAM QUESTIONS

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CH 14 EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -19 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Direct Relief

Answer:

During the early years of the Great Depression, there was no federal system of direct relief -- cash payments or food provided by the government to the poor. Some cities and charity services did offer relief to those who needed it, but the benefits were meager.

Question 2: Hawley-Smoot Tariff Act

Answer:

In 1930, Congress passed the Hawley-Smoot Tariff Act, which established the highest protective tariff in United States history. It was designed to protect American farmers and manufacturers from foregin competetion. Yet it had the opposite effect. By reducing the flow of goods into the United States, the tariff prevented other countries from earning American currency to buy American goods.

Question 3: Dow Jones Industrial Average

Answer:

The Dow Jones Industrial Average was the most widely used barometer of the stock market's health.The Dow is a measure based on the stock prices of 30 representative large firms trading on the New York Stock Exchange.

Question 4: Price Support

Answer:

Congress tried to help out farmers with a piece of legislation called the McNary-Haugen bill. This called for federal price supports for key products such as wheat, corn, cotton, and tobacco. The government would buy surplus crops at guaranteed prices and sell them on the world market.

Question 5: Speculation

Answer:

People were engaging in Speculation -- that is, they bought stocks and bonds on the chance of a quick profit, while ignoring the risks.

Question 6: Boulder Dam

Answer:

In the fall of 1929, nearly one year into his presidency, Hoover was finally able to authorize consturction of Boulder Dam (later called Hoover Dam). World's tallest dam, and the second largest. Provided electricity, flood control, regular water supply.

Question 7: Soup Kitchen

Answer:

Every day the poor dug through garbage cans or begged. Soup kitchens offering free or low-cost food.

Question 8: Bread Lines

Answer:

Bread lines are lines of people waiting to receive food provided by charitable organizations or public agencies, became a common sight. One man described a breadline in New York City.

Question 9: Herbert Hoover

Answer:

After the stock market crash of October 1929, President Herbert Hoover tried to reassure Americans that the nation's economy was on a sound footing. "Any lack of confidence in the economic future...is foolish," he declared. In his view, the important thing was for Americans to remain optimistic and to go about their business as usual.

Question 10: Dust Bowl

Answer:

the region that was the hardest hit, including parts of Kansas, Oklahoma, Texas, New Mexico, and Colorado came to be known as the Dust Bowl. Plagued by dust storms and evictions, thousands of farmers and sharecroppers left their land behind.

Question 11: Black Tuesday

Answer:

On October 29 -- now known as Black Tuesday -- the bottom fell out of the market and the nation's confidence. Shareholders frantically tried to sell before prices plunged even lower. The number of shares dumped that day was a record of 16.4 million.

Question 12: Shantytown

Answer:

Others built makeshift shacks out of scrap materials. Before long, numerous Shantytowns -- little towns consisting of shacks -- sprang up. There were people living in orange crates, rusted out cars, and junk.

Question 13: Alfred

• Smith

Answer:

Although economic disaster was around the corner, the election of 1928 took place in a mood of apparent national prosperity. This election pitted Republican candidate Herbert Hoover against Democrat Alfred

• Smith.

Question 14: Bonus Army

Answer:

In 1932, an incident further damaged Hoover's image and public morale. That spring, between 10,000 and 20,000 World War I veterans and their families arrived in Washington D.C., from various parts of the country. They called themselves the Bonus Expeditionary Force, or the Bonus Army. The Bonus Army came to the nation's capital to support a bill under debate in Congress. The Patman Bill authorized the government to pay a bonus to World War I veterans who had not been compensated adequately for their wartime service.

Question 15: Buying on Margin

Answer:

Many began Buying on Margin -- paying a small percentage of a stock's price as a down payment and borrowing the rest. With easy money available to investors, the unrestrained buying and selling fueled the market's upward spiral.

Question 16: Great Depression

Answer:

The stock market crash signaled the beginning of the Great Depression -- the period from 1929 to 1940 in which the economy plummeted and unemployment skyrocketed. The crash alone did not cause the Great Depression, but it hastened the collapse of the economy and made the depression more severe.

Question 17: Reconstruction Finance Corporation

Answer:

Hoovers most ambitious economic measure, however, was the Reconstruction Finance Corporation (RFC), approved by Congress in January 1932. It authorized $2 billion for emergency financing for banks, life insurance companies, rail roads, and other large businesses. Hoover believed that the money would trickle down to the average citizen thorugh job gowth and higher wages.

Question 18: Federal Home Loan Bank Act

Answer:

In 1932, Hoover signed into law the Federal Home Loan Bank Act, which loawered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid foreclosure.

Question 19: Credit

Answer:

The often bought goods on credit -- an arrangement in which consumers agreed to buy now and pay later for purchases. This was often in the form of an installment plan (usually in montly payments) that included interest charges.