To the whole world, the Great Depression of 1929 – 1939 was one of the most gloomiest phases in modern world history. It was a decade of economic collapse, political unrest, and social disturbance. The beginning of the stock market crash is reported on Black Tuesday in October 1929 in the United States, and it spread like wildfire across the globe, leading to mass deflation, unemployment, and a sharp decline in international trade, including imports and exports. For all the aspirants who are aiming for competitive exams like UPSC, JKPSC, JKSSB, and SSC, this topic is of vital importance as it is influenced by economic policies as well as political ideologies; hence, we have curated one of the best researched and most valuable MCQs for the topic of the great depression. This is a great way to prepare for this topic and also to analyze where you need to study more. This will also help you to revise at the quickest and at the last moments of your preparation, so if you want to secure your chance in the upcoming examination, go for the 25 MCQs mentioned below.
Which year is recognized as the beginning of the Great Depression when the American stock market crashed?
(A) 1925
(B) 1927
(C) 1929
(D) 1931
Correct Answer: (C) 1929
The Great Depression that began in the United States eventually spread to almost every country in the world.
(A) True
(B) False
(C) Only in Europe
(D) Only in Asia
Correct Answer: (A) True
What name is given to the October 29, 1929, American stock market crash that triggered the Depression?
(A) Black Friday
(B) Black Tuesday
(C) Black Monday
(D) Black Thursday
Correct Answer: (B) Black Tuesday
During the Great Depression, unemployment in the United States rose as high as what percentage?
(A) 10%
(B) 15%
(C) 23%
(D) 33%
Correct Answer: (C) 23%
The Great Depression caused international trade to fall drastically by what percentage compared to earlier years?
(A) 25%
(B) 40%
(C) 50%
(D) 70%
Correct Answer: (C) 50%
According to the Treaty of Versailles, which country was forced to pay heavy reparations after World War I?
(A) France
(B) Germany
(C) Italy
(D) Britain
Correct Answer: (B) Germany
In which month and year did American share prices peak before they started falling and created panic?
(A) July 1928
(B) August 1929
(C) October 1930
(D) December 1927
Correct Answer: (B) August 1929
The reckless selling of shares during the Wall Street Crash led thousands of investors to lose what?
(A) Homes
(B) Jobs
(C) Everything / all their money
(D) Factories
Correct Answer: (C) Everything / all their money
The 1929 Wall Street Crash forced many banks and companies to close, leading to widespread what?
(A) Profits
(B) Job losses
(C) Migration to Europe
(D) Farm growth
Correct Answer: (B) Job losses
Between 1929 and 1933, the stock market lost almost what percentage of its total value?
(A) 50%
(B) 70%
(C) 90%
(D) 100%
Correct Answer: (C) 90%
During the Great Depression, how many banks failed in the United States, leaving people without savings?
(A) 1,000
(B) 5,000
(C) 11,000
(D) 20,000
Correct Answer: (C) 11,000
Mention the year in which Herbert Hoover established the Reconstruction Finance Corporation (RFC)?
(A) 1929
(B) 1930
(C) 1931
(D) 1932
Correct Answer: (C) 1931
Who defeated President Herbert Hoover in the U.S. presidential election of 1932 during the Depression crisis?
(A) Woodrow Wilson
(B) Franklin D. Roosevelt
(C) Theodore Roosevelt
(D) Harry Truman
Correct Answer: (B) Franklin D. Roosevelt
On March 6, 1933, Roosevelt declared a national bank holiday, closing all banks until what condition was met?
(A) Banks were given loans
(B) Banks were declared secure by the government
(C) Banks merged into one system
(D) Banks had zero losses
Correct Answer: (B) Banks were declared secure by the government
The New Deal of 1933 introduced programs like CCC and WPA primarily to provide what for Americans?
(A) Free food
(B) Federal assistance and temporary jobs
(C) Free housing
(D) Army training
Correct Answer: (B) Federal assistance and temporary jobs
Which environmental disaster in the Midwest caused mass migration during the Great Depression?
(A) Cyclone Storm
(B) Dust Bowl
(C) Flood of 1935
(D) Heat Wave
Correct Answer: (B) Dust Bowl
The Social Security Act of 1935 provided Americans with what form of financial protection?
(A) Free education
(B) Retirement insurance and pensions
(C) Subsidized housing
(D) War compensation
Correct Answer: (B) Retirement insurance and pensions
During the Great Depression, many families were forced to live in slum communities called what?
(A) Dust Camps
(B) Hoovervilles
(C) Roosevelt Towns
(D) Depression Homes
Correct Answer: (B) Hoovervilles
Which U.S. law of 1930 imposed high tariffs on goods, worsening international trade during the Depression?
(A) Tariff Act of Roosevelt
(B) Hoover Tax Act
(C) Smoot-Hawley Tariff Act
(D) New Deal Tariff Act
Correct Answer: (C) Smoot-Hawley Tariff Act
The New Deal created many agencies and programs, but 1935 1943 which agency employed 8.5 million?
(A) Civilian Conservation Corps (CCC)
(B) Works Progress Administration (WPA)
(C) Reconstruction Finance Corporation (RFC)
(D) Federal Reserve Agency (FRA)
Correct Answer: (B) Works Progress Administration (WPA)
Franklin D. Roosevelt’s New Deal policies helped the recovery, but many believe that the global event finally ended the Depression.
(A) Cold War
(B) World War II
(C) Korean War
(D) Vietnam War
Correct Answer: (B) World War II
By which year did American production levels finally return to those before the Great Depression began?
(A) 1937
(B) 1939
(C) 1942
(D) 1945
Correct Answer: (C) 1942
During the Great Depression, the average American family income dropped by approximately what percentage?
(A) 10%
(B) 20%
(C) 30%
(D) 40%
Correct Answer: (D) 40%
By 1933, how many businesses were estimated to have failed in the United States?
(A) 30,000
(B) 100,000
(C) 200,000
(D) 300,000
Correct Answer: (D) 300,000
Which Indian port was receiving 1,600 ounces of gold daily by 1931 due to farmers’ distress sales?
(A) Calcutta Port
(B) Chennai Port
(C) Bombay Port
(D) Karachi Port
Correct Answer: (C) Bombay Port
