THE GREAT DEPRESSION 1929 1940
PRESIDENT HERBERT HOOVER AND THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It offered families federal loans subsidized by the government.
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It passed the Emergency Relief and Construction Act.
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It told the states to continue spending their own money.
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It created social security and welfare.
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Detailed explanation-1: -Amidst widespread unemployment and financial collapse resulting from the 1929 stock market crash, Congress passed the Emergency Relief and Construction Act of 1932, creating the Reconstruction Finance Corporation (RFC) and authorizing loans to private corporations providing housing for low-income families.
Detailed explanation-2: -In July 1932, Hoover signed into law the Emergency Relief Construction Act, which allowed the RFC to lend $300 million to the states for relief programs and $1.5 billion for public works projects. Hoover also persuaded Congress to establish Federal Home Loan Banks to help protect people from losing their homes.
Detailed explanation-3: -On May 12, 1933, the United States Congress created the Federal Emergency Relief Administration (FERA). This organization’s purpose was initially to distribute 500 million dollars in federal funds to state agencies. These funds were grants and not loans. Thus, the state governments did not have to repay these funds.