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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over-employment
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a lack of credit
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a concentration of wealth in large businesses
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too much government regulation
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Detailed explanation-1: -RFC was created to boost economy after the great depression. It did so by financialy supporting banks railroad companies, and other businesses so that there is more money in the economy which resulted in more investments. The answer is 1. a lack of credit.
Detailed explanation-2: -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-3: -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.