Hoovers Response to the Depression

Question 1

What did the Reconstruction Finance Corporation set up in Summer 1932?

Answer 1

The Emergency Relief and Construction Act

Question 2

How much did the Reconstruction Finance Corporation (RFC) allocate in relief funds to be lent to individual states?

Answer 2

$1.5 billion

Question 3

What were the limitations to the relief funds that the RFC lent to states to set up public works?

Answer 3

• States had to declare themselves bankrupt in order to be lent the money
• Not enough money to meet the problem
• Too little too late
• It was a loan, states went further into debt if they did borrow the money

Question 4

What was the aim of the Reconstruction Finance Corporation in 1932?

Answer 4

To lend up to $2 billion to rescue banks

Question 5

How did Hoovers values / beliefs influence his spending of Federal government money?

Answer 5

It meant that Hoover was not willing to give Federal money in direct relief, but would lend money to states to start public works projects for the unemployed.

Question 6

How much money was allocated in unemployment relief in 1932?

Answer 6

$500 million