Exercises on the 1929 Crisis

(Learn – adapted) In 1932, the US government of Franklin Roosevelt undertook an economic plan to control the economic crisis that started with the stock market crash in 1929. plan became known and what is its main feature?

a) New Deal, proposed state intervention in the economy.

b) Marshall Plan, developed the economy by investing in post-World War I European recovery.

c) Monroe Doctrine, expanded the market to Latin America.

d) Truman Doctrine, prevented the spread of communism.

e) McCarthyism, promoted political reform in the country.

(Excellence Institute – adapted) Regarding the crisis of 1929, analyze the statements below:

I - The Crisis of 1929, also known as The Great Depression, was the biggest crisis of financial capitalism.

II - The economic collapse began in mid-1929 in the United States and spread throughout the capitalist world. Its effects lasted for a decade and had social and political ramifications.

III - The Crisis of 1929, in Brazil, weakened the rural oligarchies that dominated the political scene and paved the way for the arrival of Getúlio Vargas to power in 1930.

Check the CORRECT alternative.

a) II and III only

b) Only III

c) I, II and III

d) Just I

e) None of the alternatives

(Ibade) “In the worst period of the Depression (1932-3), 22% to 23% of the British and Belgian workforce, 24% of the Swedish, 27% of the American, 29% Austrian, 31% Norwegian, 32% Danish and no less than 44% German had no job…” (Adapted. Hobsbawm, Eric. Age of extremes :the brief twentieth century:1914-1991. São Paulo:Companhia das Letras, 1995. pag. 97)

The above account references the Great Depression. On this topic, it can be said that:

a) started in 1929, the crisis contributed to the price of Brazilian coffee, which became more sought after in Central America.

b) the United States only began to overcome the crisis with the implementation of the New Deal, which, among other things, invested heavily in privatization and in increasing working hours work.

c) considered a crisis of overconsumption and low production, the United States was unable to cope with the world demand for industrialized products.

d) contributed to the rise of fascist regimes around the world, such as in Germany, Italy, Spain and Portugal.

e) meant a turning point in the dispute between capitalists and socialists, also called the Cold War. The crisis proved that capitalism is flawed.

(Ibade) On October 24, 1929, the New York Stock Exchange crashed. The following week, the Great Depression begins, an economic crisis that profoundly affected all western industrialized countries or countries dependent on the United States.

About the Crisis of 29, it is correct to say that:

a) the crisis did not affect Europe, as the countries had protected their national economies.

b) it was a crisis of overproduction and underconsumption, compounded by the concentration of wealth.

c) Brazil was not affected, as its main export product (coffee) continued to be bought by the international market.

d) the main catalyst of the crisis was the competition that Asia started to do with the United States in the 1920s.

e) in opposition to the crisis, the number of unemployed began to fall in Germany and Italy.

Select the alternative that brings action by the Brazilian government in response to the 1929 Crisis:

a) creation of a grant for the large number of unemployed.

b) promoted major reforms in Rio de Janeiro to guarantee employment to the population.

c) bought the dollar, taking advantage of the favorable exchange rate.

d) removed the backing of the national currency of the dollar.

e) promoted the purchase of coffee bags to prevent the product from falling.

Which of these areas of the US economy was already in decline in the 1920s:

a) agriculture

b) industry

c) tourism

d) services

e) trade

The day the Crisis of 1929 began has gone down in history as:

a) Dark Thursday

b) Bankruptcy Day

c) Black Thursday

d) Depressing Thursday

e) Great Depression

The crisis of 1929 broke out when:

a) the US Central Bank announced a moratorium.

b) base interest has reached 25% per annum.

c) the New York Stock Exchange crashed.

d) the government defaulted on all public servants in the country.

e) none of the above.

Who was the US president when the Crisis of 1929 began:

a) Franklin D. Roosevelt

b) Theodore Roosevelt

c) Herbert Hoover

d) Calvin Coolidge

e) Harry Truman

The period of euphoria that marked the United States in the early 1920s became known as:

a) Roaring Twenties

b) Golden Years

c) Belle Époque

d) American Decade

e) None of the above

Which of the following factors is not considered one of the reasons for the outbreak of the 1929 crisis:

a) real estate speculation

b) the economic embargo imposed by the Russians

c) economic competition from Europe

d) the low wages of workers

e) the overproduction

LETER A

The New Deal was the economic recovery program imposed by President Franklin Delano Roosevelt as a way to combat the effects of the 1929 Crisis. The government created a series of actions to guarantee jobs and created benefits to help the population, such as unemployment insurance.

LETER C

All the statements made by the question are correct, because the 1929 Crisis is considered, until today, the biggest economic crisis in history. Its effects began in the United States and spread throughout the world, also affecting our country, especially the coffee sector.

LETER D

The economic crisis brought about by the Great Depression reinforced the distrust that many felt about economic liberalism and liberal democracies. As a result, authoritarian outlets, such as fascism and Nazism, gained strength on the European continent.

LETER B

The theory most accepted today by historians about the causes of the 1929 Crisis is based on the overproduction of goods, driven by the euphoria of the country's industry, and on low consumption, the result of low wages of workers.

LETTER E

The main initiatives to combat the effects of the 1929 crisis in Brazil were carried out by Getúlio Vargas, president from 1930 onwards. One of the measures taken was the purchase and burning of sacks to guarantee the increase in the price of coffee in the international market.

LETER A

Some historians point out that, since the beginning of the 1920s, North American agriculture faced difficulties, mainly due to the low profitability of the area. The agriculture crisis has caused many small US banks to fail after borrowing from farmers in the country.

LETER C

Black Thursday is the way we know October 24, 1929, when the New York Stock Exchange crashed. The stock market crash took place when more than 12 million shares were put up for sale, causing their values ​​to plummet.

LETER C

The crash of the New York Stock Exchange was the trigger for the Crisis of 1929. The speculation bubble burst when millions of shares were put up for sale, causing entire companies to quickly devalued. The picture continued in the following days, sending the US economy into bankruptcy.

LETER C

When the New York Stock Exchange crashed and the economic crisis spread across the United States in 1929, the country's president was Herbert Hoover. He was President of the United States until the year 1922.

LETER A

The 1920s became known in Portuguese as the Roaring Twenties. The term was used to demonstrate all the euphoria that the country was experiencing with the post-war economic growth and technological development.

LETER B

Among the alternatives presented, only the economic embargo does not represent one of the factors that started the 1929 Crisis, since such an embargo was not carried out by the Russians in the period.