Name: ____________________________

Class: ____ Date: ___________________

Chapter 11 and 12 ACC Test

True/False Indicate whether the statement is true or false. ____ ____ ____ ____ ____ ____ ____ ____ ____ 1. Buying on margin was a method of buying stocks with mostly borrowed money. 2. The stock market crash caused the Great Depression. 3. The Hawley-Smoot Tariff dampened commerce on both sides of the Atlantic. 4. Herbert Hoover pushed Congress to provide federal government money for direct relief of impoverished families. 5. Abandoning the gold standard would increase the value of the dollar. 6. Franklin Roosevelt came to office with a clear agenda for how he was going to deal with the Depression. 7. When people lost their jobs and could no longer pay their mortgages, the Home Owners' Loan Corporation lengthened the term of their loans rather than foreclose on their property. 8. The Farm Credit Administration helped many poor farmers keep their land, but it may have slowed the overall economic recovery. 9. The Public Works Administration required its contractors to hire African Americans.

____ 10. The Supreme Court ruled unconstitutional the Wagner Act, which guaranteed certain workers' rights. Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 11. Stock prices first began to decline in late 1929 because a. stockbrokers stopped margin loans. c. several companies went bankrupt. b. company earnings declined. d. investors began to sell their stock. ____ 12. In the 1920s, the Federal Reserve contributed to weaknesses in the stock market by a. keeping interest rates low. c. lending to foreign companies. b. speculating on market interest rates. d. lending to speculators. ____ 13. Farmers on the Great Plains began to lose their crops during the Depression because a. the soil lost its fertility. b. frequent rains eroded the soil. c. a fungus depleted the soil of nutrients. d. a terrible drought dried the soil.

____ 14. President Hoover hoped that public works would a. solve the budget deficit. b. spur the construction industry. c. provide jobs lost in the private sector. d. help reduce farm foreclosures. ____ 15. President Hoover opposed direct federal relief to the unemployed because he believed that a. only state and city governments should dole out relief. b. federal relief would shorten the Depression. c. charities could provide sufficient relief until the economy improved. d. individuals should be responsible for taking care of themselves. ____ 16. Thousands of World War I veterans came to Washington in 1932 to lobby Congress to a. enact a bonus for war veterans and their families. b. pass legislation giving veterans their promised bonus early. c. provide public works jobs for unemployed veterans. d. provide military jobs for unemployed veterans. During [World War I] we necessarily turned to the government to solve every difficult economic problem. . . . When the war closed . . . we were challenged with a peacetime choice between the American system of rugged individualism and a European philosophy of diametrically opposed doctrinesdoctrines of paternalism and state socialism. Herbert Hoover, campaign speech delivered October 22, 1928

____ 17.

According to the excerpt, whom did the people of the United States turn to in order to solve difficult economic problems during World War I? a. European nations c. private charities b. business leaders d. the government

____ 18. a. b. c. d.

What two philosophical positions are contrasted in this excerpt? individualism and imperialism individualism and socialism socialism and laissez-faire economics capitalism and socialism

____ 19. A major contribution to Herbert Hoovers landslide victory in the 1928 election was a. the prosperity of the 1920s. c. his promise to end Prohibition. b. his tax relief plan. d. his plan to support farm prices. ____ 20. The stock market crash weakened the nations banks because a. banks had invested their deposits in the stock market. b. banks depended on their stock for operating funds. c. investors no longer had money to deposit in banks. d. investors could no longer afford to take out loans from banks. ____ 21. In search of work or a better life during the Depression, many unemployed people a. destroyed Hoovervilles. c. became homeless. b. became farmers. d. rode the rails.

____ 22. The first feature-length animated film was a. Animal Crackers. b. The Wizard of Oz.

c. Snow White and the Seven Dwarfs. d. Mr. Smith Goes to Washington.

____ 23. The original purpose of the Reconstruction Finance Corporation was to a. regulate the stock market. b. manage public works projects. c. make loans to businesses. d. administer public assistance programs for the homeless. ____ 24. In May 1932, the Senate voted down a bill that would have a. given special tax cuts to members of the military. b. guaranteed health care for all U.S. citizens. c. authorized early payment of World War I veterans bonuses. d. provided jobs to all military veterans.

Causes of the Great Depression

Overproduction and low demand lead to employee layoffs Low wages reduce consumer buying power High tariffs restrict foreign demand for American goods Unemployment reduces buying power

____ 25.

According to the chart, high tariffs restricted foreign demand for American manufactured goods. Why were these tariffs in place? a. Hoover refused to allow any foreign imports into the country. b. They were mandated by the Treaty of Versailles. c. They were required by the Constitution. d. They protected U.S. goods from foreign competition.

____ 26. A long period of rising stock prices is known as a a. margin call. c. foreclosure. b. bank run. d. bull market. ____ 27. The group of World War I veterans who marched on Washington in 1932 was called the a. Bonus Picketers. c. Bonus Army. b. Bonus Rebels. d. Bonus Veterans. ____ 28. During the Depression, many state governors declared bank holidays to a. give bank employees a break. c. reduce the value of the dollar. b. prevent bank runs. d. help the Federal Reserve. ____ 29. Roosevelts advisers who supported New Nationalism wanted government agencies to a. work with businesses. c. break up big companies. b. run key parts of the economy. d. set up welfare programs. ____ 30. To fight the Depression, the first thing Roosevelt set out to do was to a. provide direct relief to people. c. restore confidence in the banks. b. set up public works programs. d. provide relief for farmers.

____ 31. To regulate the stock market, Congress created the a. Federal Trade Commission. b. Securities and Exchange Commission. c. National Recovery Administration. d. Social Security Administration. ____ 32. The National Industrial Recovery Act allowed business, labor, and the government to cooperate in setting up a. trusts to promote competition. b. codes of fair competition. c. tax regulations for each industry. d. hiring requirements for each industry. ____ 33. One purpose of the Townsend plan was to a. free up jobs for the unemployed. b. redistribute wealth. c. nationalize the banking system. d. end public works programs.

____ 34. Framers of the Social Security Act saw it primarily as a. an insurance measure. c. a retirement pension measure. b. a welfare measure. d. a relief measure. ____ 35. Franklin Roosevelts court-packing plan was a serious mistake because a. many Americans opposed the idea of forced retirement. b. the angry judges reacted by striking down much of the New Deal legislation. c. it appeared to interfere with the Constitutions separation of powers. d. the angry judges struck down the plan as unconstitutional. This is preeminently the time to speak the truth, frankly and boldly. Nor need we shrink from honestly facing conditions in our country today. This great Nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself. . . . Franklin Delano Roosevelt, first inaugural address, March 4, 1933

____ 36.

According the Roosevelt, what is it time for the people and nation to do? a. not cower from the current situation c. ignore their problems b. accept their current conditions d. follow their leader

____ 37. The Emergency Banking Relief Act helped solve the banking crisis by a. putting all banks under government operation. b. declaring that the gold standard would not be abandoned. c. issuing licenses to banks that federal examiners found to be financially sound. d. closing the banks long enough for the Federal Reserve to replenish their gold reserves. ____ 38. The Agricultural Adjustment Administration tried to help farmers by a. helping small farmers become more efficient. b. paying them not to grow crops. c. buying farm surpluses. d. making land available for farming.

____ 39. The Federal Number One program employed a. young men ages 18 to 25. b. workers in the construction industry. c. displaced tenant farmers. d. people in the arts.

____ 40.

Which of the following choices best completes the diagram about the historic political realignment triggered by the New Deal? a. white Southerners c. business leaders b. African Americans d. progressives

____ 41. Roosevelt triggered a new economic downturn in 1937 by a. launching new programs. c. breaking up trusts. b. decreasing government spending. d. decreasing taxes. ____ 42. Senator Huey Long wanted the government to a. share the wealth of the rich. b. balance the budget. c. pay citizens over 60 a monthly pension. d. stop interfering with business. ____ 43. Franklin Roosevelts policies for ending the Depression became known as the a. fireside chats. c. gold standard. b. Glass-Steagall Act. d. New Deal. ____ 44. The period of time in 1933 when the newly elected Franklin Roosevelt sent bill after bill to Congress came to be called the a. Bank Holiday. c. Rise to Power. b. Hundred Days. d. New Deal. ____ 45. To inform and reassure citizens, Franklin Roosevelt addressed them directly by radio in what were called a. relief programs. c. safety nets. b. sit-down strikes. d. fireside chats. ____ 46. The United Auto Workers staged ________ strikes against General Motors, in which they stopped working but refused to leave the factory. a. broker c. sit-down b. violent d. mediated ____ 47. Child labor was abolished by the a. Wagner Act. b. Fair Labor Standards Act. c. Social Security Act. d. National Industrial Recovery Act.

____ 48. In taking on a mediating role among competing interests, the New Deal established what some have called a. the relief program. c. the broker state. b. binding arbitration. d. welfare capitalism. ____ 49. Which of the following insisted that contractors not discriminate against African Americans? a. Civil Works Administration c. National Recovery Administration b. Farm Credit Administration d. Public Works Administration Completion Complete each statement. 50. ____________________ invested in stocks, betting that the market would continue to climb so that they could make a quick profit. 51. The great stock market crash occurred in the year ____________________. 52. Newly homeless people put up communities of shacks that they called "____________________," blaming the president for their plight. 53. To pay for New Deal programs, Roosevelt abandoned a balanced budget and began using _____________________ spending. Matching Match each item with the correct statement below. a. hobos f. b. Black Tuesday g. c. bank run h. d. Okies i. e. Groucho Marx j. ____ 54. migrants headed west in search of better lives ____ 55. many depositors withdrawing money at once ____ 56. investing in the stock market hoping for a quick profit ____ 57. homeless wanderers who often rode the rails ____ 58. spending more than is collected in taxes ____ 59. stock market crash Douglas MacArthur Vivien Leigh John Steinbeck speculation budget deficit

Match each item with the correct statement below. a. shantytowns f. b. Alfred E. Smith g. c. Hattie McDaniel h. d. stock market i. e. relief j. ____ 60. Democratic candidate in the 1928 election

foreclosure installment plan margin call Dust Bowl Herbert Hoover

____ 61. head of the Food Administration during World War I ____ 62. loss of property due to nonpayment of a mortgage ____ 63. buying now and making payments each month ____ 64. communities of makeshift shacks on public lands ____ 67. system for buying and selling shares of companies ____ 68. drought-related conditions in the Great Plains ____ 69. money that went directly to impoverished families ____ 70. stockbrokers demand for immediate repayment of a loan Match each item with the correct statement below. a. Civilian Conservation Corps f. b. Wagner Act g. c. Frances Perkins h. d. Committee for Industrial Organization i. e. Huey Long j. ____ 71. started the United Auto Workers (UAW) ____ 72. offered unemployed young men work planting trees, fighting forest fires, and building reservoirs ____ 73. set up a process whereby dissatisfied union members could take their complaints to binding arbitration ____ 74. urged consumers to buy goods only from companies that displayed its blue eagle symbol ____ 75. first female cabinet member ____ 76. Louisiana senator who championed the downtrodden and built a powerful and corrupt political machine ____ 75. treasury secretary who favored balancing the budget ____ 76. head of the Federal Emergency Relief Administration and, later, the Works Progress Administration ____ 77. proposed a monthly government pension for citizens over age 60 to be entirely spent each month Harry Hopkins John L. Lewis National Recovery Administration Henry Morgenthau Francis Townsend

Short Answer (worth 3 points) Walking through an American city, you might find few signs of the Depression. . . . You might notice that a great many shops were untenanted . . . ; that few factory chimneys were smoking; that the streets were not so crowded with trucks. . . . Otherwise things might seem to you to be going on much as usual. The major phenomena of the depression were mostly negative and did not assail the eye. Frederick Lewis Allen, Since Yesterday

78.

What signs of the Depression might one notice while walking through an American city, according to the excerpt?

Essay (worth 10 points each) Choose two of the four to answer. Must be a paragraph long (OVER 4 sentences) 79. Discuss three major causes of the Great Depression.

80.

Use the diagram to help you explain how banks operate and why runs on banks can result in bank failure.

81. Describe Franklin Roosevelts personality and approach to the nations problems. 82. Discuss the New Deals legacy, including its effectiveness in dealing with the Depression and its lasting effects on the role of government.

Chapter 11 and 12 ACC Test Answer Section

TRUE/FALSE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: T F T F F F F T T F PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: 1 1 1 1 1 1 1 1 1 1 DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: Easy Average Challenging Average Average Easy Challenging Average Average Average REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: p. 401 p. 403 p. 405 p. 414 p. 424 p. 424 p. 427 p. 427 p. 431 p. 442

MULTIPLE CHOICE 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: D A D C A B D B A A D C C C D D C B A C B B A A C A C PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: Challenging Average Easy Average Average Average Easy Challenging Average Challenging Average Easy Average Challenging Average Average Challenging Easy Average Challenging Average Average Average Average Challenging Challenging Average REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: p. 402 p. 405 p. 407 p. 412 p. 414 p. 415 p. 401 p. 401 p. 400 p. 403 p. 406 p. 408 p. 413 p. 415 p. 405 p. 401 p. 415 p. 424 p. 424 p. 425 p. 426 p. 429 p. 436 p. 439 p. 442 p. 423 p. 425

38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49.

ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS:

B D B B A D B D C B C D

PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS:

1 1 1 1 1 1 1 1 1 1 1 1

DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF:

Easy Average Easy Average Easy Easy Average Average Average Average Average Average

REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF:

p. 428 p. 436 p. 440 p. 442 p. 435 p. 423 p. 424 p. 425 p. 438 p. 445 p. 445 p. 431

COMPLETION 50. ANS: Speculators PTS: 1 51. ANS: 1929 PTS: 1 DIF: Average DIF: Average REF: p. 401 REF: p. 402 REF: p. 406 REF: p. 434 NAT: VII.H NAT: VII.H NAT: I.A| V.B| V.G NAT: VI.C| VII.D

52. ANS: Hoovervilles PTS: 1 DIF: Easy 53. ANS: deficit PTS: 1 MATCHING 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: ANS: D C I A J B B J F G A D I E H D A PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: PTS: 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 DIF: Challenging

DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF: DIF:

Average Easy Average Average Easy Average Easy Average Average Average Easy Easy Average Average Average Average Easy

REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF: REF:

p. 407 p. 403 p. 401 p. 406 p. 413 p. 402 p. 400 p. 400 p. 415 p. 405 p. 406 p. 400 p. 407 p. 414 p. 401 p. 438 p. 430

71. 72. 73. 74. 75. 76. 77.

ANS: ANS: ANS: ANS: ANS: ANS: ANS:

B H C E I F J

PTS: PTS: PTS: PTS: PTS: PTS: PTS:

1 0 1 1 1 1 1

DIF: DIF: DIF: DIF: DIF: DIF: DIF:

Average Average Average Average Average Average Average

REF: REF: REF: REF: REF: REF: REF:

p. 438 p. 429 p. 441 p. 435 p. 442 p. 431 p. 436

SHORT ANSWER 78. ANS: One might notice empty buildings and idle factories. Also, the streets might not be so crowded with trucks. PTS: 3 DIF: Average REF: p. 406 NAT: I.C| II.C| IV.E| V.B| VII.G MSC: Document Based Question NOT: Learn more about this question in The American Vision: Modern Times, page 406, and in the Reading Essentials and Note-Taking Guide, Chapter 11, Section 2, and visit this books Online Learning Center at glencoe.com. ESSAY 79. ANS: Most economists agree that overproduction was a key cause of the Depression. Increasingly efficient machinery greatly sped the production of factory and farm goods. Most Americans, however, did not earn enough to buy up the flood of goods they helped produce. As consumers bought more goods on the installment plan, the debt incurred forced some to reduce their other purchases. As sales slowed, manufacturers cut production and laid off employees. Jobless workers had to cut back purchases even more, causing business activity to spiral downward. A second cause was the loss of export sales. American banks were making loans to speculators instead of to foreign companies. This, along with the Hawley-Smoot Tariff that dampened foreign sales in the United States, caused foreign countries to buy fewer American products. A third cause was mistakes by the Federal Reserve. Instead of raising interest rates to curb excessive speculation, it kept rates low. This action encouraged banks to make risky loans and encouraged businesses to borrow more money to expand production, adding to the problem of overproduction. PTS: 10 DIF: Challenging REF: p. 404

80. ANS: Most banks make a profit by lending out money received from depositors and collecting interest on the loans. The bank holds only a fraction of the depositors money to cover everyday business, such as occasional withdrawals. Ordinarily that reserve is enough to meet the banks needs, but if too many people withdraw their money at the same time, the reserves will not be sufficient to cover the withdrawals, and the bank will eventually collapse. PTS: 10 DIF: Challenging REF: p. 403 NAT: VII.D| VII.G

81. ANS: Americans saw in Roosevelt an energy and optimism that gave them hope despite the tough economic times. His serenity and confidence amazed many people, and his fireside chats helped reassure them. Also, many people believed that his struggle with polio had given him a better understanding of their hardships. Roosevelts confidence that he could make things better contrasted sharply with Hoovers apparent failure to do anything effective. In his campaign for president, Roosevelt revealed the approach he would take as president: Above all, try something. He implemented his campaign promise with a flurry of bills to Congress during the first Hundred Days. Unlike the public impression of Hoover, Roosevelt was doing something. PTS: 10 DIF: Challenging REF: p. 422 NAT: II.F| VI.E| X.C| VII.A

82. ANS: The New Deal had only limited success in ending the Depression. Unemployment remained high, and economic recovery was not complete until after World War II. Even so, the New Deal gave many Americans a stronger sense of security and stability. The New Deal tended to operate so that it balanced competing economic interests. Business leaders, farmers, workers, consumers, homeowners, and others now looked to government to protect their interests. This broker role in mediating among competing interests has continued under the administrations of both parties ever since. Also, the New Deal programs created a safety net that protected people against economic disaster. After the Roosevelt years, the American people felt that the government had a duty to maintain this safety net, even though it required a larger, more expensive federal government. PTS: 1 DIF: Challenging REF: p. 445