THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Europeans nations so that they could pay off their war debts
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investors so that they could engage in more stock speculation
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depositors so that they could withdraw their savings from banks
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banks so that they could lend money to businesses to stimulate economic activity
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Detailed explanation-1: -The RFC was a new government-sponsored financial institution whose purpose was to lend directly to banks and other financial institutions including those without access to Federal Reserve credit facilities.
Detailed explanation-2: -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.
Detailed explanation-3: -The idea was suggested by Eugene Meyer of the Federal Reserve Board of Governors, recommended by President Herbert Hoover, and established by Congress in 1932. It was modeled after the US War Finance Corporation of World War I.
Detailed explanation-4: -The Reconstruction Finance Corporation benefited business owners and bankers: those at the top of the American economy. It was the first attempt by the federal government to address the suffering of the Great Depression.