Reference no: EM133130756
1. Grant describes the depression of 1920-1921 as:
a. the last governmentally unmedicated depression.
b. nothing more than a common cold.
c. the first depression where the government actively tried to lessen its impact.
2. Grant argues that the depression of 1920-1921 was ended through:
a. Keynesian-type fiscal policies.
b. Keynesian-type monetary policies.
c. falling wages and prices.
3. Grant cites Murray Rothbard in that the way for a government to alleviate a depression is to:
a. gently massage it back to health.
b. leave it alone.
c. hit it with a massive dose of antibiotics.
4. The U.S. presidents that were in power during the depression of 1920-1921 were:
a. Wilson and Harding.
b. Roosevelt and Wilson.
c. Hoover and Roosevelt.
5. In vetoing an appropriations bill for drought-stricken farmers in Texas, President Cleveland said:
a. "Because the people support the government, the government should support the people."
b. "Though the people support the government, the government should not support the people."
c. "Even though the people do not support the government, the government should support the people."
6. In 1919 the number of workers in America that were on strike was about:
a. 1 in 20, or 5%.
b. 1 in 10, or 10%.
c. 1 in 5, or 20%.
7. In 1916, 1917, 1918 and 1919 consumer prices:
a. were relatively flat.
b. rose by double digits each year.
c. fell, but only slightly.
8. In 1919, the world's biggest office building was being built in Detroit by:
a. General Motors.
b. Ford.
c. Chrysler.
9. In 1919, Harry Truman (future U.S. president) started what kind of business in Kansas City?
a. Haberdashery.
b. Cigar shop.
c. Pharmacy.
10. To finance spending a (sovereign) government can:
a. raise taxes and borrow from the public.
b. print money.
c. Both of the above.
11. Wilson believed that the inflation following the end of World War I was due to:
a. the hoarding of food.
b. the hoarding of gold.
c. the greed of Wall Street financiers.
12. In the years before WWI, arguing for stable prices rather than a gold standard was:
a. John Maynard Keynes.
b. Irving Fisher.
c. Paul Samuelson.
13. The Federal Reserve Act included the mandate that the Fed promote:
a. price stability.
b. low unemployment.
c. Neither of the above.
14. The first president ("governor") of the New York Federal Reserve Bank was:
a. Irving Fisher.
b. Benjamin Strong.
c. John Williams.
15. At the end of July 1914, with European stock markets closing down, the New York Stock Market:
a. also closed down, although briefly.
b. stayed open with business as usual.
c. was only open for an hour before trading was suspended.
16. From 1914 to 1917, the U.S. experienced:
a. net gold outflows of about $1 billion.
b. net gold inflows of about $1 billion.
c. essentially no net gold inflows/outflows.
17. From 1916 to 1919, the U.S. federal government budget:
a. went into huge deficits.
b. ran huge surpluses.
c. was pretty much balanced.
18. Following the end of WWI, President Wilson:
a. held international negotiations for peace in New York City.
b. went to France for many months to participate in crafting the League of Nations treaty.
c. left all peace negotiating on behalf of the U.S. to his Secretary of State.
19. President Wilson's incapacitation began while on:
a. a railroad trip across the country to promote the League of Nations treaty.
b. the USS George Washington heading to France to negotiate terms for peace.
c. an auto trip from Washington D.C. to New York City due to an accident.
20. President Wilson's specific physical (and mental) condition was:
a. widely known by the public.
b. known by political leaders in the Administration and Congress, but no by the public.
c. known by only a few trusted aides of the president.
21. In order to save food for the war effort, Herbert Hoover, then in charge of the U.S. Food Administration, initiated:
a. Soup Sundays.
b. Meatless Mondays.
c. Fasting Fridays.
22. According to Christina Romer, what best describes the 1920-1921 period of the American economy?
a. It was worse than the later Great Depression.
b. It was as bad as the later Great Depression.
c. It was more of a mild downturn than a real depression.
23. The world-wide influenza panic of 1919 killed about:
a. 400,000 people.
b. 4 million people.
c. 40 million people.
24. The head of GM who lost tens of millions of dollars trying to hold up the firm's stock price in 1920 (and lost his job) was:
a. Charles Schwab.
b. Billy Durant.
c. Henry Ford.
25. Which of the following is true about John Skelton Williams?
a. He was the Comptroller of the Currency.
b. He was the Vice President under President Wilson.
c. He was the Secretary of the Treasury.
26. In his June 1920 speech before bankers in Maine, John Skelton Williams noted that:
a. no national bank in Maine had ever failed.
b. only three national banks in Maine had ever failed.
c. about half the national banks in Maine had failed and the rest were threatening to do so.
27. In 1920-1921 the National City Bank was experiencing problems and receiving increased regulatory scrutiny due to:
a. its increased reliance on borrowed funds.
b. its lax lending standards, especially in Europe and Cuba.
c. Both of the above.
28. National City Bank was heavily involved in the financing of:
a. sugar production in Cuba.
b. potato production in Ireland.
c. olive oil production in Italy.
29. To deal with the problem of inflation in January of 1920, the Federal Reserve:
a. increased interest rates to 6%.
b. decreased interest rates to 2%.
c. let interest rates unchanged at 4%.
30. According to Grant, the low business failure rate of 1919, and into 1920, was due to:
a. technical change that was decreasing costs.
b. surging demand for exports which was increasing their prices.
c. the ability to borrow at very low interest rates.
31. At the age of 16, _____ was the youngest graduate of the University of Alabama.
a. Irving Fisher.
b. William P. G. Harding.
c. John Skelton Williams.
32. By law, the percentage of gold that the Fed was required to hold as a reserve against their Federal Reserve Notes was:
a. 10%
b. 25%.
c. 40%.