1) Why did buying stocks on margin make the stock market more risky in the late 1920s? a) Investors held onto stocks longer b) The government closely controlled the market c) Investors lost more money when stock prices fell d) Fewer people were able to buy stocks 2) Why did the Stock Market Crash of 1929 cause so many banks to fail a) Banks were forced to close by the government b) Banks had invested deposiBanks had invested depositors’ money in the stock market c) The Federal Reserve shut down all accounts d) Foreign countries demanded immediate repayment 3) Why did soup kitchens become common during the Great Depression? a) Farmers refused to sell food b) The government banned food programs c) Unemployment was so high that charities could not keep up d) Banks controlled food supplies 4) What problem did the Bonus Army march of 1932 expose? a) Too much government spending b) The government failed to support struggling veterans c) Veterans wanted to overthrow the government d) The military had too much power 5) Hoovervilles showed that: a) Federal housing programs were successful b) Private charities alone could not solve homelessness c) Most people preferred living outside cities d) Suburbs were growing rapidly 6) Why did the Hawley-Smoot Tariff make the Great Depression worse? a) It caused prices to rise b) Other countries stopped trading with the U.S. c) Workers earned too much money d) Competition completely disappeared 7) How did the Dust Bowl worsen the Great Depression? a) It increased crop productioned b) It ruined farmland and forced families to move c) It created factory jobs d) It improved soil quality 8) Why was the New Deal a major change in government policy? a) The government reduced its role b) Businesses were given full control c) The federal government became more involved in fixing the economy d) State governments lost all power 9) One lasting effect of the New Deal was that it: a) Ended all economic problems b) Eliminated unemployment forever c) Ended capitalism d) Increased the government’s responsibility to help citizens 10) Why was the Bank Holiday effective? a) It rebuilt trust in the banking system b) All banks were permanently closed c) Interest rates were raised d) People were forced to save money 11) How did the Emergency Banking Act increase presidential power? a) Congress lost all authority b) All banks became government-owned c) Private banks were banned d) The president could decide which banks reopened 12) Why was the SEC created? a) To increase foreign trade b) To help farmers c) To regulate the stock market and prevent fraud d) To create jobs 13) How did the FDIC help Americans trust banks again? a) It guaranteed bank profits b) It insured people’s deposits c) It limited withdrawals forever d) It closed small banks 14) How did the AAA try to raise farm prices? a) By producing more crops b) By ending subsidies c) By importing food d) By paying farmers to produce less 15) What made the TVA different from most New Deal programs? a) It focused on banks b) It only gave cash payments c) It helped a specific region of the country d) It helped only cities 16) How did the HOLC help homeowners? a) By refinancing loans to prevent foreclosures b) By canceling mortgages c) By raising interest rates d) By building new houses 17) What two problems did the CCC mainly address? a) Inflation and overproduction b) Unemployment and environmental damage c) Banking and trade d) Housing and food shortages 18) Why was the CWA criticized? a) It helped too slowly b) It replaced private businesses c) It only helped farmers d) It was expensive for the government 19) Why was the FERA important? a) It was the first federal program to give direct relief to states b) It ended unemployment c) It focused only on long-term recovery d) It eliminated poverty 20) How did the NLRB help workers? a) By banning strikes b) By removing employer rules c) By protecting the right to form unions d) By setting wages 21) Why were Fireside Chats effective? a) They replaced newspapers b) They helped Americans trust FDR during hard times c) They announced new laws immediately d) They gave legal advice 22) Why is Frances Perkins important? a) She ran the WPA b) She controlled the banking system c) She opposed unions d) She helped create Social Security 23) Why was Father Charles Coughlin a threat to FDR? a) He influenced millions through radio broadcasts b) He controlled Congress c) He led violent protests d) He ran for president 24) Why did Francis Townsend’s plan gain support? a) It helped young workers b) It promised income for the elderly c) It eliminated taxes d) It reduced government spending 25) Why did Huey Long become nationally famous? a) He supported FDR b) He focused on foreign policy c) He opposed Social Security d) He proposed the “Share Our Wealth” plan 26) What made the WPA unique? a) It helped only farmers b) It was short-term c) It created millions of jobs, including in the arts d) It helped only skilled workers 27) Why was the Social Security Act important? a) It provided long-term support for retirees b) It ended unemployment c) It replaced private pensions d) It applied only to veterans

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