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Great Depression

Great Depression Quiz/Chetjenn

What percentage of Americans were out of work? 25%
Why were banks and companies forced to close after the stock market crash of 1929? Farmers weren't paying back loans (no money), banks make poor judgements w/ people's money
What was the Bank Holiday? FDR ordered banks to temporarily close to regroup - only the strongest reopened.
What things led to the dust storms? long period of drought (dry period – no rain), dry and extreme weather conditions, farmers over plowed their fields – was also overgrazed by animals – dried up soil, poor soil conservation by farmers, “Black Blizzards” – violent wind and dust storms.
Relief, Recovery, Reform - what did this stand for? Relief – the immediate policy – gave aide to hungry and homeless people Recovery – provide jobs (short-term) Reform- change policies (long-term)
How did Hoover respond to the Depression? Hoover believed in “Laissez Faire” – leave alone – which means, people should take care of themselves – the government should not get involved in personal & business affairs. He wanted the Red Cross and Salvation Army to take care of them instead.
How did people respond to the New Deal? People liked that it brought more work, but gave the Federal Govt. too much power. Also, National Debt increased
What were Hoovervilles? They were “towns” where people who lost their homes lived in cardboard boxes. People were angry at President Hoover for refusing the give aid to people who lost their homes. So, they called the towns “Hoovervilles.”
Black Tuesday -what is it and what caused it? Stock Market Crashed on October 29, 1929. Causes: Overproduction of goods than Americans could afford, Bad banking – not regulated by govt., People used credit cards to buy more than they could afford. They could not pay back, Stock Market Speculation
What did farmers do as a result of the dust bowl? Where did they go? Farmers packed up, left their homes and moved away to locations like California.
Schools/education during the Depression Many schools closed, some children dropped out of school to go to work
Bull Market When stock prices rose and the market was good. People made money and the economy was strong.
Bear Market When stock prices fell and the market was losing money. People were out of work and economy was weak.
What was the FDIC? Federal Deposit Insurance Corporation - insured savings accounts in banks approved by the government.
Created by: chetjenn