The Great Depression

Mr. Shak
May 22, 2024

The Great Depression

The Great Depression began in the United States following a major stock
market crash on October 29, 1929, known as Black Tuesday. The crash trig-
gered a severe financial panic as investors lost confidence in the stock market
and rushed to sell their shares. This collapse led to a significant reduction
in consumer spending and investment, causing businesses to fail and facto-
ries to close. Banks, which had heavily invested in the stock market, faced
insolvency, leading to widespread bank failures. The resultant loss of sav-
ings and credit further deepened the economic downturn. Agricultural prices
plummeted, leaving farmers unable to pay off debts. Unemployment sky-
rocketed as industries shut down, resulting in millions of Americans losing
their jobs and homes. The U.S. government initially responded with pro-
tectionist policies, such as the Smoot-Hawley Tariff, which worsened global
trade and economic conditions. The depression spread worldwide, exacerbat-
ing economic instability in Europe and other regions already struggling with

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post-World War I debts. The crisis highlighted the weaknesses in the global
financial system and the lack of coordinated international economic policy.
President Herbert Hoover’s administration was criticized for its inadequate
response to the crisis. It wasn’t until the election of Franklin D. Roosevelt
and the implementation of the New Deal that more significant government
intervention began to stabilize the economy. The Great Depression lasted
until the onset of World War II, which spurred industrial production and job
creation, ultimately leading to economic recovery.

Multiple Choice Questions

1. When did the Great Depression begin?

A. 1920

B. 1929

C. 1939

D. 1945

2. What event is commonly associated with the start of the Great De-
pression?

A. The New Deal

B. The Dust Bowl

C. Black Tuesday

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 D. World War II

3. What caused the initial financial panic that led to the Great Depres-
sion?

A. Bank nationalization

B. Stock market crash

C. Rise in agricultural prices

D. Increase in consumer spending

4. How did the collapse of the stock market affect businesses?

A. Increased consumer spending

B. Business expansion

C. Business failures and factory closures

D. Increased investment

5. What was the impact on banks during the Great Depression?

A. Banks prospered

B. Banks faced insolvency

C. Banks expanded operations

D. Banks increased lending

6. What happened to agricultural prices during the Great Depression?

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 A. Prices increased

B. Prices stabilized

C. Prices plummeted

D. Prices remained the same

7. How did the U.S. government initially respond to the Great Depression?

A. Implemented protectionist policies

B. Increased social welfare programs

C. Nationalized industries

D. Declared a state of emergency

8. Which tariff is mentioned as worsening global trade conditions?

A. McKinley Tariff

B. Smoot-Hawley Tariff

C. Payne-Aldrich Tariff

D. Fordney-McCumber Tariff

9. Who was the U.S. president when the Great Depression began?

A. Franklin D. Roosevelt

B. Woodrow Wilson

C. Herbert Hoover

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 D. Harry S. Truman

10. What ultimately led to the economic recovery from the Great Depres-
sion?

A. The New Deal policies

B. Agricultural price increase

C. Onset of World War II

D. Stock market resurgence