The Great Depression and the New Deal (1929-1941) — High School U.S. History practice questions

Bank failures in the early 1930s were made worse by:

1. the FDIC's rules
2. runs on banks with no deposit insurance
3. the gold standard's end
4. Social Security payments draining bank reserves

Answer: B — runs on banks with no deposit insurance

B) Correct — Depositors rushed to withdraw, and failed banks took savings with them. A) The FDIC was created in 1933 to stop this. C) Came after the worst runs. D) Began later.

A major underlying cause of the Great Depression was:

1. overproduction of goods alongside weak consumer demand
2. too little production of goods to meet demand
3. high taxes on the wealthy
4. World War II spending

Answer: A — overproduction of goods alongside weak consumer demand

A) Correct — Factories and farms produced more than people could afford to buy, while wealth was concentrated at the top. B) Reverses the problem. C) Taxes on the rich were cut in the 1920s. D) Came later and helped end it.

The FDIC was created to:

1. regulate the stock market
2. employ young men in parks
3. pay pensions to the elderly
4. insure bank deposits

Answer: D — insure bank deposits

D) Correct — Insurance restored trust and ended bank runs. A) Is the SEC. B) Is the CCC. C) Is Social Security.

The Smoot-Hawley Tariff (1930):

1. ended the Depression
2. lowered tariffs to boost trade with Europe and Asia
3. provoked foreign retaliation and cut world trade
4. created Social Security

Answer: C — provoked foreign retaliation and cut world trade

C) Correct — Other nations raised their own tariffs, deepening the slump. A) It made it worse. B) It raised them. D) Came in 1935.

A lasting effect of the New Deal was that:

1. the federal government shrank
2. the Depression ended by 1935
3. Washington took more responsibility for the economy
4. labor unions lost the legal protections they had won

Answer: C — Washington took more responsibility for the economy

C) Correct — Americans came to expect federal action in hard times. A) It grew. B) It lasted until the war. D) They gained them.

The Great Depression finally ended mainly because of:

1. spending for World War II
2. the Smoot-Hawley Tariff of 1930
3. Hoover's policies
4. the 1929 crash ending

Answer: A — spending for World War II

A) Correct — War production put millions back to work. B) Made it worse. C) Didn't end it. D) The crash started it.

Critics like Huey Long argued that the New Deal:

1. spent far too much money
2. didn't go far enough to share wealth
3. was unconstitutional in nearly every part
4. should end Social Security

Answer: B — didn't go far enough to share wealth

B) Correct — Long's “Share Our Wealth” plan proposed taxing the rich heavily. A) Was the conservative criticism. C) Wasn't Long's argument. D) Isn't his position.

The Bonus Army of 1932 was:

1. a New Deal jobs program
2. soldiers sent to fight in Europe
3. World War I veterans seeking early payment of promised bonuses
4. a group of striking autoworkers who marched on Detroit

Answer: C — World War I veterans seeking early payment of promised bonuses

C) Correct — Troops drove them from Washington, hurting Hoover's image. A) Isn't the meaning. B) Isn't the meaning. D) Isn't the meaning.

The Wagner Act (1935):

1. protected workers' right to form unions
2. banned strikes
3. created Social Security for retired workers
4. ended child labor

Answer: A — protected workers' right to form unions

A) Correct — It created the National Labor Relations Board. B) It protected labor activity. C) Was a separate act. D) Came with the Fair Labor Standards Act, 1938.

FDR's New Deal aimed at relief, recovery and:

1. rearmament
2. repeal of Prohibition alone
3. reduction of the federal government
4. reform

Answer: D — reform

D) Correct — Reforms were meant to prevent another depression. A) Came later, as war approached. B) Repeal came in 1933 but isn't one of the three Rs. C) The government grew.

How did Hoover respond to the Depression?

Herbert Hoover relied mostly on voluntary cooperation and limited federal relief, though he created the Reconstruction Finance Corporation to lend to banks and businesses. Shantytowns of the homeless were mockingly called "Hoovervilles."

What were causes of the Great Depression?

Stock speculation, bank failures, overproduction, weak agricultural sector, unequal wealth distribution, high tariffs (Smoot-Hawley), and tight monetary policy.

How did FDR stop the banking panic of 1933?

He declared a national bank holiday, and Congress passed the Emergency Banking Act so only sound banks reopened. The Glass-Steagall Act then created the FDIC to insure deposits.

What was the New Deal?

FDR's 1933–38 programs to provide Relief, Recovery, and Reform — including Social Security, the WPA, the CCC, and the SEC.