2. The Great Depression and the New Deal

3. What were 3 causes of the Great Depression? Overspeculation in stocks Collapse of the banking system Hawley-Smoot Tariff

4. What event triggered the Great Depression? The Stock Market Crash

5. What is reform? Change for the Better

6. What is speculation? Buying something at a low price in the hope of selling it later at a profit

7. What functions as the central bank of the United States? The Federal Reserve System

8. What controls the nation’s money supply? The Federal Reserve

9. What is inflation? When prices increase and the dollar buys less

10. What does the Federal Reserve do to stop inflation? Raise interest rates

11. What acts as a banker’s bank? The Federal Reserve

12. The Federal Reserve’s power to set ______ _____ enables it to control the nation’s money supply. Interest Rates

13. What was the unemployment rate in 1932? 25%

14. What was the Great Depression? A period of economic hardship between 1929 and World War II

15. What were 4 effects of the Great Depression? Unemployment and homelessness increased Bank Closings -- the collapse of the nation’s financial system Political Unrest Farm Foreclosures

16. What does the Federal Reserve do if it believes the economy is overheating and causing inflation? Raises interest rates

17. What does the Federal Reserve do if it believes the economy is slowing down? Lowers interest rates

18. What is the largest stock market in the United States? The New York Stock Exchange

19. What does it mean to buy stock on margin? Buy stock on credit

20. What is a protective tariff? A tax on imports that is so high that Americans cannot afford to buy foreign goods

21. What was the Hawley- Smoot Tariff? Protective Tariff the Highest Tariff Rates in History

22. Who was president when the Great Depression began? Herbert Hoover

23. What was Herbert Hoover’s political party? Republican

24. What president started the New Deal? Franklin Roosevelt

25. What was FDR’s political party? Democrat

26. What was FDR’s program to end the Great Depression? The New Deal

27. Who said, “The only thing we have to fear is fear itself?” Franklin D. Roosevelt

28. What were the 3 R’s of the New Deal? Relief Recovery Reform

29. What was the purpose of the New Deal Relief programs? Ease the Suffering of the Unemployed

30. What was the purpose of New Deal Recovery programs? Help Business Recover

31. What was the purpose of New Deal Reform programs? Bring about Change for the Better in U.S. society

32. Identify FDIC. Today insures bank deposits up to $100,000

33. For what does FDIC stand? Federal Deposit Insurance Corporation

34. For what did AAA stand? Agricultural Adjustment Administration

35. What did AAA do? Limited farm production to raise livestock and crop prices

36. What was WPA? Federal gov’t. program that paid people to work on public works projects

37. What are public works projects? Gov’t. programs that build roads, schools bridges, post offices, parks….

38. For what did the Social Security Act provide? Unemployment Insurance Old-Age Pensions

39. What 3 rights did Organized Labor gain during the New Deal? Right to form a Union Right to Strike Minimum Wage

40. When did the Great Depression end? World War II

41. Since the New Deal, who do Americans hold responsible for bringing prosperity to the U.S. economy? The federal gov’t., especially the President