Name: 
 

2010 - U.S. History Chapter 12 Practice Test



Matching
 
 
Directions: Match the definitions with the terms. Write the correct letter in each blank. You will not use all of the terms.
a.
Great Depression
j.
business cycle
b.
localism
k.
repatriation
c.
tenant farmers
l.
Douglas MacArthur
d.
bread line
m.
Hoover Dam
e.
Herbert Hoover
n.
Okies
f.
trickle-down economics
o.
Hawley-Smoot Tariff
g.
Bonus Army
p.
speculation
h.
Black Tuesday
q.
Dust Bowl
i.
RFC
 

 1. 

World War I veterans who marched to demand payment of money promised by Congress
 

 2. 

Dust Bowl refugees who moved westward to find work
 

 3. 

risky stock purchases made by investors with the hope of high returns
 

 4. 

President when the stock market crashed
 

 5. 

government efforts to encourage or pressure Mexican immigrants to return to Mexico
 

 6. 

General who dispersed protestors in the capital by ordering federal troops to fire on them with tear gas
 

 7. 

the periodic expansion and contraction of the economy
 

 8. 

agricultural workers who work on land owned by someone else
 

 9. 

the theory that money invested in banks and businesses will work its way through the system to laborers
 

 10. 

the occasion of the stock market crash
 
 
Directions: Match the definitions with the letter of the correct term or person. You will not use all the terms and people.
a.
business cycle
d.
Hawley-Smoot Tariff
b.
Herbert Hoover
e.
speculation
c.
Black Tuesday
f.
Great Depression
 

 11. 

a time of economic downturn and high unemployment between 1929 and 1941
 

 12. 

the periodic expansion and contraction of the economy
 

 13. 

United States President from 1929 to 1933
 

 14. 

a risky stock purchase intended to turn quick profits
 

 15. 

a tax passed in 1930 on foreign products brought into the United States
 
 



Directions:
Match the definitions with the letter of the correct term or person. You will not use all the terms and people.
a.
bread lines
d.
Okies
b.
Dust Bowl
e.
tenant farmers
c.
Hoovervilles
f.
repatriation
 

 16. 

Dust Bowl refugees from the Great Plains, called _____, headed west to look for work.
 

 17. 

During the Great Depression, many homeless people grouped together to build _____, or makeshift shantytowns of tents and shacks.
 

 18. 

_____ lived on and worked land owned by someone else.
 

 19. 

Local, state, and federal governments tried to coerce Mexican immigrants to return to Mexico through _____.
 

 20. 

Impoverished people in the cities often waited in _____ to obtain free food from charities and public agencies.
 

Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 21. 

Which group experienced an early depression in the 1920s?
a.
farmers
c.
industrial workers
b.
bank owners
d.
stock market investors
 

 22. 

During the 1920s, the United States economy moved through which phase of the business cycle?
a.
expansion
c.
contraction
b.
regression
d.
deflation
 

 23. 

In 1929, the stock market crashed because
a.
the Federal Reserve increased the money supply.
b.
Germany ceased reparations payments to the United States.
c.
investors lost confidence in the market and rushed to sell their shares.
d.
depositors lost their investments and tried to withdraw all of the savings from banks.
 

 24. 

Which factor contributed to the spread of the Great Depression overseas?
a.
Europe increased trade to the United States.
b.
Congress lowered tariffs on foreign imports.
c.
American industry reduced production levels.
d.
The United States raised tariffs & cut back investment in Europe.
 

 25. 

Both African Americans and Mexican Americans had an especially difficult time during the Great Depression because they
a.
had little community and family support upon which to rely.
b.
were forced to migrate from the South to find work in northern cities.
c.
had to fight repatriation efforts by local, state, and federal government officials.
d.
faced discrimination when competing with white Americans for a limited number of jobs.
 

 26. 

Why did volunteerism fail?
a.
Banks made too many loans to struggling businesses.
b.
Businesses and citizens acted in their individual best interests.
c.
President Hoover supported more federal government intervention.
d.
Charitable organizations took control of local and state relief efforts.
 

 27. 

Congress instituted the RFC to loan money to
a.
European nations so that they could pay off their war debts.
b.
investors so that they could engage in more stock speculation.
c.
depositors so that they could withdraw their savings from banks.
d.
banks so that they could lend money to businesses to stimulate economic activity.
 

 28. 

Why did the Bonus Army march on Washington, D.C.?
a.
The Federal Reserve refused to pay veterans their bonuses.
b.
General MacArthur attacked protestors demanding their bonuses.
c.
President Hoover vetoed a bill providing for early payment of bonuses.
d.
Congress passed a bill promising to pay veterans their bonuses early.
 

 29. 

Which of these factors helped hide economic problems in the 1920s?
a.
Investors lost confidence in the market.
b.
Farmers sold crop surpluses to pay off their debts.
c.
Americans purchased many consumer goods on credit.
d.
Wages increased at the same pace as worker productivity.
 

 30. 

What event occurred on Black Tuesday?
a.
Unemployment reached nearly 25 percent.
b.
The Federal Reserve lowered interest rates.
c.
Investors sold more than 16 million shares of stock.
d.
Germany stopped reparation payments to the United States.
 

 31. 

Why did so many banks collapse at the beginning of the Great Depression?
a.
Too many investors tried to open new accounts.
b.
Too many depositors tried to withdraw their money all at once.
c.
The stock market collapsed too slowly to collect on debts.
d.
The Federal Reserve put too much money into circulation.
 

 32. 

European countries reacted to the Hawley-Smoot Tariff by
a.
increasing global trade.
c.
importing more American goods.
b.
passing high protective tariffs.
d.
lowering prices on European goods.
 

 33. 

What economic condition did economist John Maynard Keynes believe caused the Great Depression?
a.
lack of government intervention
b.
strict controls on stock speculation
c.
too much oversight of the banking system
d.
limits on production and consumer spending
 

 34. 

At the beginning of the Great Depression, urban unemployment
a.
decreased slightly.
c.
increased slightly.
b.
stayed about the same.
d.
increased dramatically.
 

 35. 

Members of the Taxpayers Protection League resisted evictions by
a.
building Hoovervilles.
c.
moving to cheaper lodgings.
b.
staging nonviolent protests.
d.
pooling resources to pay their rent.
 

 36. 

Which of these factors contributed to the plight of rural farmers?
a.
a long rainy season
b.
decreased debt burden
c.
falling prices for crops and livestock
d.
increased demand for agricultural products
 

 37. 

Farmers contributed to the problems that led to the Dust Bowl by
a.
putting down new layers of topsoil.
b.
moving off of the plains to find new farmland.
c.
damming western rivers and using irrigation techniques.
d.
using intensive farming practices that removed protective grasses.
 

 38. 

The unemployment rate among African Americans was
a.
nearly double the national rate.
b.
slightly higher than the national rate.
c.
about the same as the national rate.
d.
slightly lower than the national rate.
 

 39. 

President Hoover responded cautiously to the Great Depression because he
a.
thought that the business cycle would correct itself.
b.
was distracted by the giant dust storms in the Great Plains.
c.
did not have any experience with business methods and economic theory.
d.
believed that the federal government needed to take an active approach to recovery.
 

 40. 

The policy of volunteerism called for which of the following?
a.
higher taxes
b.
businesses to keep employment, wages & prices at current levels.
c.
cuts in employment and wages
d.
less reliance on charitable contributions
 

 41. 

President Hoover urged Congress to institute the RFC because he believed that the economy suffered from
a.
a lack of credit.
b.
over-employment.
c.
too much government regulation.
d.
a concentration of wealth in large businesses.
 

 42. 

Some Americans blamed the Great Depression on
a.
fascism.
c.
capitalism.
b.
socialism.
d.
communism.
 

 43. 

Why did many Americans decide that the country needed new leadership in 1932?
a.
Prices for farm products were rising again.
b.
Congress had passed a bill to pay World War I veterans their bonuses early.
c.
President Hoover’s volunteerism and trickle-down economic policies had failed.
d.
President Hoover denied responsibility for the use of federal troops against protestors.
 

 44. 

What was the destination of most Dust Bowl migrants?
a.
agricultural areas to the north
c.
Colorado’s central valley
b.
cities to find work
d.
Kansas City
 
 
Directions: Answer the following questions on a separate sheet of paper.
 

 45. 

How did the uneven distribution of the nation’s wealth lead to the depression?
a.
Farmers had huge surpluses of crops but demand for them decreased drastically so they went into debt.
b.
Acquiring a line of credit was easy, but it caused more debt for people who could not make payments.
c.
Wealthy people grew wealthier and had money to spend on consumer products, but this spending was not enough to keep the economy booming.
d.
All of the above.
 

 46. 

Why were banks one of the first institutions to feel the effects of the stock market crash?
a.
People began to lose confidence in the economy and frightened depositors began to remove their money from banks.
b.
Banks gave out too many loans in the early 1920s so there was a great deal of money in circulation.
c.
The Federal Reserve increased interest rates in the 1920s to stimulate economic growth, but then limited money supply to discourage lending.
d.
After the stock market crash people went to banks to secure their hard money so they could circulate it back into the economy.
 
 
Use the timeline and your knowledge of social studies to answer the following questions.

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 47. 

What did President Hoover do that directly led the Bonus Army march on Washington in 1932?
a.
vetoed the Adjusted Compensation Act
b.
encouraged the beginning of the Reconstruction Finance Corporation
c.
vetoed the bill that Congress passed allowing early bonus payment to out-of-work veterans
d.
allowed federal troops to remove the Bonus Army with great force
 

 48. 

What event happened when the veteran groups marched in protest on Washington?
a.
Five hundred thousand protesters used force to occupy government buildings.
b.
The U.S. Senate ordered General MacArthur to use federal troops to remove the protestors by using force.
c.
General MacArthur, along with Dwight Eisenhower and George Patton, agreed it was necessary to use poison gas to remove the protestors.
d.
Federal troops used tear-gas and marched with their bayonets on the protestors, many of the veterans were injured and their “Hoovervilles” were burned.
 



 
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