Test review

The Great Depression and

New Deal

1. "Those who do not learn from history are doomed to repeat it." What does this quote mean?

1. If we do not study history and the positive and negative events that take place we will not learn from the way our predecessors made decisions and we will make similar mistakes

2. What were the causes of the stock market crash?

a. Buying on credit or margin and unable to pay when called upon

b. Price and value drops in stocks c. Speculation- a way of gambling with

short term investments by buying low and selling when price goes up

d. Profit taking

What were the causes of the Great Depression?

a. Stock Market crash b. Depressed farm industry c. Uneven Wealth distribution d. Mistakes made by the Federal reserve in

loan rates e. Decreased foreign trade

How did buying on margin work? By making a cash payment of sometimes

even as little as 10% and borrowing the rest from a broker an investor would buy stock in hopes of selling when the stock rose and pay back the borrowed money.

What was the purpose of the Works Progress Administration and the Civilian Conservation Corp?

. To put people back to work in projects that would benefit the communities

Why was the motion picture industry so successful during the Depression? It gave people a means of escape from the depression of their day to day lives

What invention of the thirties also became critical in the escape from daily problems? Radio

What was the bonus Army? WWI veterans marched on Washington

seeking their pension early.

Huey Long- Louisiana governor that proposed radical means to get people out of depression. Long created the Share Our Wealth program in 1934, with the motto "Every Man a King," proposing new income redistribution measures action to curb the poverty and crime that came as a result of the Great Depression.

. Franklin Roosevelt- President of the US from New York. During the Depression he created the New Deal programs for recovery from the depression

Herbert Hoover- President at the time of the Stock Market crash and early years of the depression, favored a hands off policy to allow business work out its problems on their own

Dorothea Lange- took the picture "Migrant Mother" that showed the image of the Depression in print

Federal Deposit Insurance Corporation- FDIC- insured deposits by citizens to prevent loss if a bank went under

Sacco and Vanzetti- two immigrant tried and convicted for murder as much based on their citizenship and fear as the evidence

Black Tuesday- Tuesday October 29th,1929 when the stock market crashed

Fire side Chats" - Roosevelt's radio broadcasts that comforted the public during the depression

Stocks- shares of business ownership whose price can constantly fluctuate

Foreclosure- legal procedure of reclaiming a piece of property when the buyer can not keep up the mortgage payments

Dust Bowl - period of drought on Midwest farms between 1932 and 1939

Al Capone- Chicago mobster that gained power and wealth during the twenties from the sale of illegal alcohol

Agricultural Adjustment Act-reduced farm surpluses and raised prices for struggling farmers

Social Security act- Created an unemployment system disability insurance, old age pension and child welfare benefits

Tennessee Valley Authority- TVA- built hydroelectric plants and dams, aimed

at improving seven southern states and attracting industry to the south