Question 1
In 1932, the Reconstruction Finance Corporation
A. lent funds only to financial institutions with sufficient collateral.
B. was created by Congress over President Herbert Hoover's veto.
C. spent most of its money trying to prop up unstable local banks.
D. was ruled unconstitutional by the Supreme Court.
E. focused most of its spending on large urban cities in the Northeast.
Question 2
In 1932, the Farmers' Holiday Association
A. began and spread throughout the South.
B. was essentially a farmers' strike.
C. led to more public money being sent to rural areas.
D. argued that farmers should also reap the benefits of welfare capitalism.
E. called on farmers to leave their lands unplanted.
Question 3
After Democrats won control of Congress in the 1930 elections, President Herbert Hoover
A. refused to support a more vigorous public spending program for relief.
B. told reporters that his economic recovery policies had not been successful.
C. deferred to their economic agenda of relief and public spending programs.
D. criticized voters for abandoning the economic principles of the Republican Party.
E. urged the new Congress to construct Hoovervilles to shelter the unemployed.
Question 4
As the depression deepened, President Herbert Hoover
A. stopped worrying about trying to balance the budget.
B. began to experiment with untried economic principles.
C. called for a reduction in taxes.
D. encouraged businessmen to reduce their industrial production.
E. grew less willing to increase federal spending.
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