The Great Depression and the New Deal

1
The Great Depression and the New Deal
2
What were 3 causes of the Great Depression?

• Overspeculation in stocks
• Collapse of the banking system
• Hawley-Smoot Tariff

3
What event triggered the Great Depression?

• The Stock Market Crash

4
What is reform?

• Change for the Better

5
What is speculation?

• Buying something at a low price in the hope of
  selling it later at a profit

6
What functions as the central bank of the United
States?

• The Federal Reserve System

7
What controls the nations money supply?

• The Federal Reserve

8
What is inflation?

• When prices increase and the dollar buys less

9
What does the Federal Reserve do to stop
inflation?

• Raise interest rates

10
What acts as a bankers bank?

• The Federal Reserve

11
The Federal Reserves power to set ______ _____
enables it to control the nations money supply.

• Interest Rates

12
What was the unemployment rate in 1932?

• 25

13
What was the Great Depression?

• A period of economic hardship between 1929 and
  World War II

14
What were 4 effects of the Great Depression?

• Unemployment and homelessness increased
• Bank Closings -- the collapse of the nations
  financial system
• Political Unrest
• Farm Foreclosures

15
What does the Federal Reserve do if it believes
the economy is overheating and causing inflation?

• Raises interest rates

16
What does the Federal Reserve do if it believes
the economy is slowing down?

• Lowers interest rates

17
What is the largest stock market in the United
States?

• The New York Stock Exchange

18
What does it mean to buy stock on margin?

• Buy stock on credit

19
What is a protective tariff?

• A tax on imports that is so high that Americans
  cannot afford to buy foreign goods

20
What was the Hawley-Smoot Tariff?

• Protective Tariff
• the Highest Tariff Rates in History

21
Who was president when the Great Depression began?

• Herbert Hoover

22
What was Herbert Hoovers political party?

• Republican

23
What president started the New Deal?

• Franklin Roosevelt

24
What was FDRs political party?

• Democrat

25
What was FDRs program to end the Great
Depression?

• The New Deal

26
Who said, The only thing we have to fear is fear
itself?

• Franklin D. Roosevelt

27
What were the 3 Rs of the New Deal?

• Relief
• Recovery
• Reform

28
What was the purpose of the New Deal Relief
programs?

• Ease the Suffering of the Unemployed

29
What was the purpose of New Deal Recovery
programs?

• Help Business Recover

30
What was the purpose of New Deal Reform programs?

• Bring about Change for the Better in U.S. society

31
Identify FDIC.

• Today insures bank deposits up to 100,000

32
For what does FDIC stand?

• Federal Deposit Insurance Corporation

33
For what did AAA stand?

• Agricultural Adjustment Administration

34
What did AAA do?

• Limited farm production to raise livestock and
  crop prices

35
What was WPA?

• Federal govt. program that paid people to work
  on public works projects

36
What are public works projects?

• Govt. programs that build roads, schools
  bridges, post offices, parks.

37
For what did the Social Security Act provide?

• Unemployment Insurance
• Old-Age Pensions

38
What 3 rights did Organized Labor gain during the
New Deal?

• Right to form a Union
• Right to Strike
• Minimum Wage

39
When did the Great Depression end?

• World War II

40
Since the New Deal, who do Americans hold
responsible for bringing prosperity to the U.S.
economy?

• The federal govt., especially the President