World between the Wars – A.D. 1919 – A.D. 1939 [Economic Depression]

I. Choosethe correct answer:

1. The Great Economic Depression beganin USA

2. In 1929 the American President was HerbertHoover

3. The greatest Craze in America was ShareMarket

4. FD Roosevelt assumed office on March4, 1933

5. There were normal economicactivities in the USA by 1940

II. Matchthe following:

1. Share market collapse  Speculation on borrowed money
2. Reconstruction Finance Corporation  Banks and industries
3. Economic Depression  Early 1930`s
4. Federal Reserve Bank  Loans
5. The Security Exchange Act  License to stock exchange

III.Answer the following in brief

1. What were the causes for the GreatEconomic Depression?

The causesfor the Great Economic Depression

The main cause of the depression wasthe collapse of American share market. The share market collapse was due tospeculation on borrowed money.

Share market was the greatest craze inAmerica.

2. Write a note on National IndustrialRecovery Act.

The National Industrial Recovery Act(NIRA) was passed to reform the conditions of the workers by raising wages andlowering the working hours.

3. What do you know about AgricultureAdjustment Act?

The Agricultural Adjustment Act (AAA)was passed to provide compensation to farmers there by to raise prices ofagricultural production.

IV. Answerall the questions given under each caption:


[a] When was the Presidential electionheld?

In 1932

[b] How was Franklin D. Rooseveltcommonly known as?


[c] What was his election manifesto?

“I pledge you, I pledge, myself to anew deal for the Americans”.

[d] Name the policy formulated by him.

New deal


[a] What did it restore?

It restored confidence among thepeople

[b] What did it lay?

It laid a firm foundations forindustrial prosperity and lead to increased production

[c] Mention the ideas accepted by theAmericans as part of their life?

Restriction on Hours of work are nowaccepted as part of the Americans pattern of the life.

[d] What has become synonymousthroughout the world?

New deal.

V. Answerthe following in a paragraph:

1. Write a paragraph about Relief,Recovery and Reforms introduced by Franklin D. Roosevelt.

Relief,Recovery and Reforms introduced by Franklin D. Roosevelt.

  • ThePresidential election came in 1932.
  • Franklin.D. Roosevelt, commonly known as FDR.
  • He assumedoffice on March 4, 1933.
  • In theelection manifesto he said “I pledge you, I pledge, myself to a New Deal forthe Americans”.
  • The policyformulated by FD Roosevelt known as new Deal.
  • TheTennessee Valley was established for construction of dams, power plants, floodcontrol projects, soil conservation.
  • TheFederal Emergency Relief Administration (FERA) was set up to provide with 500million dollars to the state and local governments.
  • FederalReserve Bank was set up to provide loans to banking institutions andindustries.
  • The NationalIndustrial Recovery Act (NIRA) was passed to reform the conditions of theworkers by raising wages and lowering their working hours.
  • TheAgricultural Adjustment Act (AAA) was passed to provide compensation tofarmers.
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