SAT II US History : Facts and Details in U.S. Economic History from 1899 to the Present

Study concepts, example questions & explanations for SAT II US History

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Example Questions

Example Question #11 : Facts And Details In U.S. Economic History From 1899 To The Present

What was one of the key elements of Franklin Delano Roosevelt's "100 Days" economic plan?

Possible Answers:

Creation of Medicare to help the elderly with medical care

Establishment of Social Security to provide retirement for American workers

Federal insurance for money held in banks

A large tax cut for businesses

Reform of stock market trading practices

Correct answer:

Federal insurance for money held in banks

Explanation:

During his 1932 election campaign, Franklin Delano Roosevelt promised that within his first 100 days in office he would pass numerous measures through Congress that would address the economic issues brought about by the Great Depression. Most of these were immediate fixes, focused on helping people's immediate economic plight. Chief among these was a measure of insurance for money held in American banks, which protected banks and allowed them to stay open while also guaranteeing that citizens would have money available to them.

Example Question #12 : Facts And Details In U.S. Economic History From 1899 To The Present

Poor farming techniques and bad weather led to what event?

Possible Answers:

The Famine of 1933

The Great Famine 

The Dust Storms

The Dust Bowl

Correct answer:

The Dust Bowl

Explanation:

The Dust Bowl was caused by farming techniques that stripped the Great Plains of their top soil. This mixed with a severe drought meant that the winds blowing across the plains cause massive dust storms that choked towns and cities, and destroyed the few crops that would still grow. This meant a mass migration of people would follow.

Example Question #13 : Facts And Details In U.S. Economic History From 1899 To The Present

Massive overproduction of many farm goods and certain crops meant what happened?

Possible Answers:

Loss of entire crops deemed useless

Farms unable to sell their goods

Major export markets were developed

Deflation of prices

Correct answer:

Deflation of prices

Explanation:

The massive overproduction meant that markets in America for these goods had a huge oversupply. This led to the prices of these goods to fall to incredible lows. This meant farmers could not make a profit off their harvests and many lost their farms.

Example Question #14 : Facts And Details In U.S. Economic History From 1899 To The Present

What President came up with the New Deal?

Possible Answers:

Herbert Hoover

Franklin Roosevelt

Harry Truman

Teddy Roosevelt

Correct answer:

Franklin Roosevelt

Explanation:

FDR was voted into office for one reason, to help the nation recover from the Depression. His plan to pull the nation out of the economic hole it was in was to create a series of direct relief programs and reforms called the New Deal.

Example Question #15 : Facts And Details In U.S. Economic History From 1899 To The Present

Following the start of the Great Depression, President Hoover rejected calls for direct relief. What is direct relief?

Possible Answers:

Giving money to average citizens with the hope they would spend it and stimulate the economy

Giving money to major businesses to keep them from going out of business 

Giving money to banks so they could continue operating normally

Cutting taxes so people would have more money

Correct answer:

Giving money to average citizens with the hope they would spend it and stimulate the economy

Explanation:

Direct Relief is an economic principle where a government attempts to help an ailing economy by giving citizens assistance in the form of money either as a handout or in the form of a job. The idea being that if an average person has a few extra dollars to spend, they will spend it, thus getting money flowing through the economy again.

Example Question #16 : Facts And Details In U.S. Economic History From 1899 To The Present

What was President Hoover's reason for refusing to use direct relief to help the people of the U.S. during the Great Depression? 

Possible Answers:

He did not want the government to interfere in business matters

He was ideologically opposed to it

He wanted to give aide to businesses instead

He did not want to run a budget deficit 

Correct answer:

He did not want to run a budget deficit 

Explanation:

Hoover ran for president on the platform that government should not spend more than it takes in. As the Great Depression was in full swing, the government was bringing in much less in taxes than it needed to spend in order to operate. This meant the government could barely afford to support itself, never mind give relief to citizens, so Hoover decided to stick to principles and allow the economy to right itself.

Example Question #17 : Facts And Details In U.S. Economic History From 1899 To The Present

When did the Stock Market crash, sending the United States, and the world, into the Great Depression? 

Possible Answers:

December 1929

October 1929

January 1930

May 1929

Correct answer:

October 1929

Explanation:

October of 1929 would see the start of the largest economic decline in American History. Once the stock market crashed, it started a series of events that would cause the accumulated wealth of most Americans to evaporate.

Example Question #18 : Facts And Details In U.S. Economic History From 1899 To The Present

What were the groups of people who artificially raised the price of stocks for their own profit, which ultimately lead to the stock market crash were called?

Possible Answers:

Mobs

Traders

Cartels

Gangs

Correct answer:

Cartels

Explanation:

The Cartels were groups of people who sold stock in companies they knew to be worthless that way the demand for those stocks would rise. This is when they would sell their own stocks at a huge profit, but leave all the people who had bought these stocks with nothing as they figured out the company they bought into was a sham.

Example Question #19 : Facts And Details In U.S. Economic History From 1899 To The Present

What were the rundown villages of shacks set up in many cities where the destitute lived during the Depression called?

Possible Answers:

Ramshackle 

Ghettos

Shanty Towns

Hoovervilles

Correct answer:

Hoovervilles

Explanation:

Hoovervilles were named after the President who many blamed for their woes. President Hoover's response to the Depression was considered slow, and when he did respond, inadequate. He generally did nothing to ease the suffering of American workers, and when he did do something it often only made matters worse.

Example Question #20 : Facts And Details In U.S. Economic History From 1899 To The Present

October 29, 1929 is famous for what event?

Possible Answers:

Stock market crash

End of World War I

Rise of Hitler

Election of Franklin Roosevelt

Correct answer:

Stock market crash

Explanation:

The Stock Market Crash was not as many people think, the cause of the Great Depression, it simply signaled the start of the deep decline that was caused by a host of factors.

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