Question 1

Which was not a factor in causing the Great Depression?

Accepted Answer

A) the end of a boom in construction 
B) the crash of the stock market 
C) a struggling agriculture sector 
D) structural weakness in the banking system 
E)  All of the above were factors causing the Great Depression. 
A) the end of a boom in construction 
B) the crash of the stock market 
C) a struggling agriculture sector 
D) structural weakness in the banking system 
E)  All of the above were factors causing the Great Depression.

Question 2

Walton and Rockoff contend that the likelihood of a Great Depression happening again is _______ because (among other reasons)_______.

Accepted Answer

A) substantial,our continued dependence on a highly volatile stock market. 
B) substantial,of our reliance on a fractional reserve banking system. 
C) remote,policymakers are unlikely to repeat the mistakes of the 1930s. 
D) remote,industry now makes up a much larger share of GNP than it did in the 1930s. 
A) substantial,our continued dependence on a highly volatile stock market. 
B) substantial,of our reliance on a fractional reserve banking system. 
C) remote,policymakers are unlikely to repeat the mistakes of the 1930s. 
D) remote,industry now makes up a much larger share of GNP than it did in the 1930s.

Question 3

What best describes US federal fiscal experience in the late 1920s and early 1930s?

Accepted Answer

A) Revenues collected increased rapidly through the period. 
B) A balanced budget was maintained for most of the Depression. 
C) Tax rates were consistently lowered to spur economic growth. 
D) Expenditures grew by over 300% from 1927 to 1940. 
A) Revenues collected increased rapidly through the period. 
B) A balanced budget was maintained for most of the Depression. 
C) Tax rates were consistently lowered to spur economic growth. 
D) Expenditures grew by over 300% from 1927 to 1940.

Question 4

The Stock Market Crash of 1929 probably contributed ____ to the Great Depression because _____.

Accepted Answer

A) little,it did no more than wipe out the speculative gains made earlier. 
B) little,the Fed responded by increasing the money supply. 
C) a good deal,corporations could no longer raise investment funds. 
D) a good deal,consumer confidence and spending on durables were reduced. 
A) little,it did no more than wipe out the speculative gains made earlier. 
B) little,the Fed responded by increasing the money supply. 
C) a good deal,corporations could no longer raise investment funds. 
D) a good deal,consumer confidence and spending on durables were reduced.

Question 5

According to Walton and Rockoff,which of the following was the most important in bringing the banking crises of the 1930s to an end?

Accepted Answer

A) the elimination of many weak banks through bankruptcy (survival of the fittest). 
B) the promise of federal bank deposit insurance. 
C) New Deal spending programs. 
D) World War II. 
A) the elimination of many weak banks through bankruptcy (survival of the fittest). 
B) the promise of federal bank deposit insurance. 
C) New Deal spending programs. 
D) World War II.

Question 6

The aspect of the Second Banking Crisis of the 1930s that distinguished it from the First Banking Crisis was that during the second crisis ___.

Accepted Answer

A) the Federal Reserve finally decided to act as lender of last resort. 
B) the stock market boom finally came to an end with the crash. 
C) banks in all regions of the country failed. 
D) President Roosevelt asked Congress to establish Federal deposit insurance. 
A) the Federal Reserve finally decided to act as lender of last resort. 
B) the stock market boom finally came to an end with the crash. 
C) banks in all regions of the country failed. 
D) President Roosevelt asked Congress to establish Federal deposit insurance.

Question 7

According to Fed Chairman Bernanke's analysis of the Depression-era financial system,

Accepted Answer

A) bank lending was often based on long-term relationships between banks and customers. 
B) after the banking system collapsed,it recovered quickly due to government intervention. 
C) bank lending at large was a severely depersonalized endeavor by 1925,which caused risky loan practices. 
D) Both a and b are correct. 
A) bank lending was often based on long-term relationships between banks and customers. 
B) after the banking system collapsed,it recovered quickly due to government intervention. 
C) bank lending at large was a severely depersonalized endeavor by 1925,which caused risky loan practices. 
D) Both a and b are correct.

Question 8

Monetarists such as Milton Friedman blame the Great Depression primarily (although not completely)on ___.

Accepted Answer

A) the stock market crash. 
B) the Bank Holiday. 
C) the decline in investment spending. 
D) the waves of bank failures. 
A) the stock market crash. 
B) the Bank Holiday. 
C) the decline in investment spending. 
D) the waves of bank failures.

Question 9

According to Walton and Rockoff,the recession of 1937 and 1938 could be attributed to ______ and ______.

Accepted Answer

A) the decline in world trade fostered by German and Japanese policies of self sufficiency,open market gold sales by the Federal Reserve. 
B) increases in taxes,open market gold sales by the Federal Reserve. 
C) increases in taxes,increases in bank required reserve ratios. 
D) the decline in world trade fostered by German and Japanese policies of self sufficiency,increases in bank required reserve ratios. 
A) the decline in world trade fostered by German and Japanese policies of self sufficiency,open market gold sales by the Federal Reserve. 
B) increases in taxes,open market gold sales by the Federal Reserve. 
C) increases in taxes,increases in bank required reserve ratios. 
D) the decline in world trade fostered by German and Japanese policies of self sufficiency,increases in bank required reserve ratios.

Question 10

The failure of the Bank of the United States in December 1930 probably intensified the banking panic for each of the following reasons except that it proved that ___

Accepted Answer

A) the Fed might fail to act as a lender of last resort. 
B) big banks could fail. 
C) New York Banks could fail. 
D) that Wall Street banks could fail. 
A) the Fed might fail to act as a lender of last resort. 
B) big banks could fail. 
C) New York Banks could fail. 
D) that Wall Street banks could fail.

Which was not a factor in causing the Great Depression?

Walton and Rockoff contend that the likelihood of a Great Depression happening again is _ because (among other reasons)_.

What best describes US federal fiscal experience in the late 1920s and early 1930s?

The Stock Market Crash of 1929 probably contributed to the Great Depression because _.

According to Walton and Rockoff,which of the following was the most important in bringing the banking crises of the 1930s to an end?

The aspect of the Second Banking Crisis of the 1930s that distinguished it from the First Banking Crisis was that during the second crisis ___.

According to Fed Chairman Bernanke's analysis of the Depression-era financial system,

Monetarists such as Milton Friedman blame the Great Depression primarily (although not completely)on ___.

According to Walton and Rockoff,the recession of 1937 and 1938 could be attributed to and .

The failure of the Bank of the United States in December 1930 probably intensified the banking panic for each of the following reasons except that it proved that ___

Economic History

Founding the Colonies

Colonial Economic Activities

The Economic Relations of the Colonies

Economic Progress and Wealth

Three Crises and Revolt

Hard Realities for a New Nation

Land and the Early Western Movements

Transportation and Market Growth

Market Expansion Industry in First Transition

Labor During the Early Industrial Period

Money and Banking in the Developing Economy

The Entrenchment of Slavery and Regional Conflict

War, Recovery and Regional Divergence

Agricultures Western Advance

Railroads and Economic Change

Industrial Expansion and Concentration

The Emergence of Americas Labor Consciousness

Money, Prices, and Finance in the Postbellum ERA

Commerce at Home and Abroad

Mobilizing for War

The Roaring Twenties

The New Deal

World War II

The Changing Role of the Federal Government

Government the Business Cycle After World War II

Manufacturing, Productivity, and Labor

Achievements of the Past, Challenges for the Future

Filters

Exam 23: The Great Depression

Which was not a factor in causing the Great Depression?

Walton and Rockoff contend that the likelihood of a Great Depression happening again is _______ because (among other reasons)_______.

What best describes US federal fiscal experience in the late 1920s and early 1930s?

The Stock Market Crash of 1929 probably contributed ____ to the Great Depression because _____.

According to Walton and Rockoff,which of the following was the most important in bringing the banking crises of the 1930s to an end?

The aspect of the Second Banking Crisis of the 1930s that distinguished it from the First Banking Crisis was that during the second crisis ___.

According to Fed Chairman Bernanke's analysis of the Depression-era financial system,

Monetarists such as Milton Friedman blame the Great Depression primarily (although not completely)on ___.

According to Walton and Rockoff,the recession of 1937 and 1938 could be attributed to ______ and ______.

The failure of the Bank of the United States in December 1930 probably intensified the banking panic for each of the following reasons except that it proved that ___

Economic History

Founding the Colonies

Colonial Economic Activities

The Economic Relations of the Colonies

Economic Progress and Wealth

Three Crises and Revolt

Hard Realities for a New Nation

Land and the Early Western Movements

Transportation and Market Growth

Market Expansion Industry in First Transition

Labor During the Early Industrial Period

Money and Banking in the Developing Economy

The Entrenchment of Slavery and Regional Conflict

War, Recovery and Regional Divergence

Agricultures Western Advance

Railroads and Economic Change

Industrial Expansion and Concentration

The Emergence of Americas Labor Consciousness

Money, Prices, and Finance in the Postbellum ERA

Commerce at Home and Abroad

Mobilizing for War

The Roaring Twenties

The New Deal

World War II

The Changing Role of the Federal Government

Government the Business Cycle After World War II

Manufacturing, Productivity, and Labor

Achievements of the Past, Challenges for the Future

Filters

Walton and Rockoff contend that the likelihood of a Great Depression happening again is _ because (among other reasons)_.

The Stock Market Crash of 1929 probably contributed to the Great Depression because _.

According to Walton and Rockoff,the recession of 1937 and 1938 could be attributed to and .