THE ROARING 20S 1920 1929
AMERICAN ECONOMY IN THE 1920S
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To provide direct funds to renovate housing in Hoovervilles.
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To provide government aid to struggling banks and business.
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To offer medical care to destitute families.
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To develop construction policies to renovate houses transferred by foreclosures.
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Detailed explanation-1: -The Reconstruction Finance Corporation (RFC) was established during the Hoover administration with the primary objective of providing liquidity to, and restoring confidence in the banking system.
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: -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.
Detailed explanation-4: -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.