History 106 Tamu Stranges Exam 3
Questions All Answered Correct 2025-
2026 Graded A+.
Causes of the Stock Market Crash of 1929 - Answer -Stocks were overpriced
-Credit to purchase stocks was too easy
-Fraud in the business and stock market; no gov't regulation
-The republican tax cut 1926 led to more money in the hands of investors, fueled the
overheated stock market, and investment in speculative rather than productive business
-Prices in 1929 before they crashed were 400% higher than in 1924
-The total loss was $75 billion
Causes of the Great Depression - Answer 1. Uneven distribution of wealth
2. Supply exceeded demand
- wages only increased only slightly which led to workers no longer able to purchase things
- this led to layoffs, reduced production, then more lay offs which resulted in massive
unemployment and depression
-1929: 2/3 of all families had annual income of less than $2,500
-In agriculture, over mechanization caused over production & unemployment
-Increased tariffs (The Smoot Hawley Act 1930: aimed at protecting big american businesses),
US exports fell, world trade fell
-Ran out of credit
Biggest cause of Great Depression - Answer Poor distribution of wealth
Economy during the Great Depression: the economy shrunk about
(1)___ of its size due to the depression. Unemployment was at
(2)___ million and about 5,500 banks closed because they did not separate
(3)___ and
(4) ___ banking resulting in a 3 billion dollar loss. - Answer 1. 50%
2. 8 million (23%)
3. commercial
, "chicken in every garage"
Hoovers response to the Great Depression - Answer -Too little, too late
-Believed the gov't should assist but not regulate business and believed in a balanced budget
-Wanted no socialism or federal relief programs (welfare)
-Established Reconstruction Finance Corp (1932)
-To make low cost loans available to businesses
Difference between Hoover and Roosevelt - Answer Hoover: believed the economy would
work itself out (laissez-fair) Roosevelt: believed the economy needed government intervention,
surrounded himself with an effective cabinet, and demonstrated a willingness to experiment
with new approaches and programs to end depression
Economist that Roosevelt designed his plan after - Answer John Maynard Keynes (deficit
spending to create gov't made jobs)
New Deal: Industry - Answer -Congress passes the national industry recovery act (NIRA) W/ 2
divisions
-Public works administration (PWA) (Spurred jobs and helped infrastructure...built
bridges/highway/etc.)
-National recovery act (NRA): Set up cooperation between industry and gov't; recovery by
business; regulated businesses on wages, production, and labor
Glass-Steagall Act of 1933 - Answer -Separated commercial banking from investment
banking
-Created the FDIC: to ensure safety of a depositors money in banks, the bank cannot use all my
money for investments like it was during before The Great Depresssion
Central theme of the New Deal - Answer Thought it was the governments job to keep the
welfare of the people
New Deal: Finance - Answer 1. Glass Steagall Act- separated commercial and investment
banking, limited banks (repealed)
2. Federal Deposit Insurance Corp (FDIC)- insure safety of depositors money
3. Securities & Exchange Commission (SEC)- Police stock market
Questions All Answered Correct 2025-
2026 Graded A+.
Causes of the Stock Market Crash of 1929 - Answer -Stocks were overpriced
-Credit to purchase stocks was too easy
-Fraud in the business and stock market; no gov't regulation
-The republican tax cut 1926 led to more money in the hands of investors, fueled the
overheated stock market, and investment in speculative rather than productive business
-Prices in 1929 before they crashed were 400% higher than in 1924
-The total loss was $75 billion
Causes of the Great Depression - Answer 1. Uneven distribution of wealth
2. Supply exceeded demand
- wages only increased only slightly which led to workers no longer able to purchase things
- this led to layoffs, reduced production, then more lay offs which resulted in massive
unemployment and depression
-1929: 2/3 of all families had annual income of less than $2,500
-In agriculture, over mechanization caused over production & unemployment
-Increased tariffs (The Smoot Hawley Act 1930: aimed at protecting big american businesses),
US exports fell, world trade fell
-Ran out of credit
Biggest cause of Great Depression - Answer Poor distribution of wealth
Economy during the Great Depression: the economy shrunk about
(1)___ of its size due to the depression. Unemployment was at
(2)___ million and about 5,500 banks closed because they did not separate
(3)___ and
(4) ___ banking resulting in a 3 billion dollar loss. - Answer 1. 50%
2. 8 million (23%)
3. commercial
, "chicken in every garage"
Hoovers response to the Great Depression - Answer -Too little, too late
-Believed the gov't should assist but not regulate business and believed in a balanced budget
-Wanted no socialism or federal relief programs (welfare)
-Established Reconstruction Finance Corp (1932)
-To make low cost loans available to businesses
Difference between Hoover and Roosevelt - Answer Hoover: believed the economy would
work itself out (laissez-fair) Roosevelt: believed the economy needed government intervention,
surrounded himself with an effective cabinet, and demonstrated a willingness to experiment
with new approaches and programs to end depression
Economist that Roosevelt designed his plan after - Answer John Maynard Keynes (deficit
spending to create gov't made jobs)
New Deal: Industry - Answer -Congress passes the national industry recovery act (NIRA) W/ 2
divisions
-Public works administration (PWA) (Spurred jobs and helped infrastructure...built
bridges/highway/etc.)
-National recovery act (NRA): Set up cooperation between industry and gov't; recovery by
business; regulated businesses on wages, production, and labor
Glass-Steagall Act of 1933 - Answer -Separated commercial banking from investment
banking
-Created the FDIC: to ensure safety of a depositors money in banks, the bank cannot use all my
money for investments like it was during before The Great Depresssion
Central theme of the New Deal - Answer Thought it was the governments job to keep the
welfare of the people
New Deal: Finance - Answer 1. Glass Steagall Act- separated commercial and investment
banking, limited banks (repealed)
2. Federal Deposit Insurance Corp (FDIC)- insure safety of depositors money
3. Securities & Exchange Commission (SEC)- Police stock market
