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 failed to foresee a second stock market crash that wiped out all of the progress it had made up until then.
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It did not regulate how businesses could spend money.
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It spent beyond its means and wound up borrowing money from foreign entities.
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It was too cautious and did not meet the demands of the failing economy.
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Detailed explanation-1: -What was a flaw of the Reconstruction Finance Corporation, created by President Hoover in 1932? It failed to foresee a second stock market crash that wiped out all of the progress it had made up until then. It did not regulate how businesses could spend money.
Detailed explanation-2: -The relative decline in bank lending was a major concern for RFC officials and the New Dealers, who felt that lack of lending by banks was hindering economic recovery. The sentiment within the Roosevelt administration was that the problem was banks’ unwillingness to lend.
Detailed explanation-3: -The Reconstruction Finance Corp. (RFC) was an agency authorized by the U.S. government to loan money to assist the nation’s ailing banks after the stock market crash of 1929 and during the Great Depression that followed.