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Chapter 14&15 Review

Test Review

Define Speculation Bought stocks and bonds on a chance of a quick profit, ignoring risks.
Define buying on margin Paying a small percentage of a stocks price as down payment and borrowing the rest.
What was the estimated unemployment rate? 25%
What were the consequences of the passage of the Hawley-Smoot Tariff Act? Led to significant drop in worldwide trade and increases unemployment in industries based on trade.
What are the main causes of the Great Depression? Crisis on farm sector, tariffs on foreign goods and war debts, the availabilty of easy credit, uneven distribution on income.
Which actions by Great Plains farmers helped cause the Dust Bowl? Farmers plowed up prairie grass, exhaust land through overproduction, and blew soil away.
What is direct relief? giving of money or food by the government directly to the needy people.
What were the social and psychological effects of the Great Depression? Suicide rates rise more admissions to state mental hospitals, put off college, marriage and children
What was Hoover's initial response to the Great Depression? What did he believe was governments role in the economic crisis? He did very little because he believed that the economy would fix itself. He believed the government should not have direct relief but should foster cooperation between competing interests.
What were hoboes? wandered the country, hitching rides on railroad boxcars and sleeping under bridges.
What were Hoovervilles? Poor areas that were named after Hoover-Shantytowns
Why did the government pass the Federal Home Loan Bank Act? Avoid foreclosure
What was the Bonus Army? What was its effect on the election of 1932. After Hoover faced them to disband, his reelcection chance diminished.
What was the "bank holiday" called by Roosevelt? First tep in restoring public confidence in banks- closed banks the day after office to prevent further withdrawls.
What was the AAA? What was its chief goals? Agricultural Adjustment Act- Lowered production
What was the CCC? Ojbectives? Civilian Conservation Corps- His way of taking care of environment while young men took public jobs such as building roads, planting trees, etc.
What was the purpose of the Federal Emergency Relief Act? Direct relief for the needy to help furnish food and clothing to the unemployed, the aged and the ill.
How did most New Deal legislation fare when challeged in courts? Most New Deal legislation was successful, but the NIRA and the AAA was declared unconstitutional by the Supreme Court.
What was the purpose of the WPA? Created many jobs as quickly as possible.
Who was Frances Perkins? first female cabinet member
What was the Social Security Act? Significance? Long-Term effect? Most important acheivement of New Deal.
How did the government attempt to help farmers? Why were famers encouraged to lower farm surpluses? Passed legislature geared farm relief. Worked toward boosting farm prices and farmer income by encouraging farmers to decrease farm surpluses and save loans to help farmers avoid foreclosure.
What effect did the New deal have on the economy? Didnt end the Great Depression.
Created by: kk_taki2