Question | Answer |
What was the Great Depression? | Bad economic times from 1929 to World War II |
What were 3 causes of the Great Depression? | 1) Overspeculation in stocks,
2) Bank failures,
3) Hawley-Smoot Tariff |
What is speculation? | Buying something at a low price in the hope of selling it later at a profit |
What is the largest stock market in the U.S.? | New York Stock Exchange |
What does it mean to buy stock on margin? | Buy stock on credit |
What started the Great Depression? | The stock market crash |
What is America's central bank? | The Federal Reserve |
What is inflation? | Prices increase and the dollar buys less |
What does the Federal Reserve do to stop inflation? | Raises interest rates |
What does the Federal Reserve do if the economy slows down? | Lowers interest rates |
What is a protective tariff? | Tax on imports that is so high Americans cannot afford to buy foreign goods |
What was the Hawley-Smoot Tariff? | 1) Protective tariff,
2) Highest tariff rates in American history |
Who was president when the Great Depression began? | Herbert Hoover |
What was Hoover's political party? | Republican |
What president started the New Deal? | Franklin D. Roosevelt |
What party was FDR? | Democrat |
What was the New Deal? | FDR's program to end the Great Depression |
What were "Fireside Chats"? | FDR's radio talks |
What were the 3 R's of the New Deal? | Relief, Recovery, Reform |
What did WPA do? | Paid people to work on public works projects |
Give examples of public works projects. | Roads, schools, bridges, parks, dam, libraries |
What did AAA do? | Paid farmers not to raise crops and livestock in order to increase farm prices |
What does FDIC? | Insures bank deposits |
What did the Social Security Act do? | 1) Unemployment insurance,
2) Old-age pensions |
What ended the Great Depression? | World War II |
What 3 rights did workers gain during the New Deal? | 1) Right to form a union,
2) Right to strike,
3) Minimum wage |