Question

The main purpose of the Reconstruction Finance Corporation was to

(A) provide low-cost mortgages to homeowners facing foreclosure
(B) provide government credit to secure failing banks
(C) raise farm prices by encouraging farmers to reduce output
(D) provide work relief for the unemployed through public projects
(E) provide old-age pensions and unemployment benefi ts

Answer 1

Answer : b. provide government credit to secure failing banks

The Reconstruction Finance Corporation (RFC) is a government agency that aims to help in providing assistance to institutions and businesses and other institutions that need it. Later that time, RFC is already extended to aid in supporting agricultural and other public works. Moreover, in the time of the World War II, funding for the creation of war plants and even those to private institutions are already part of the beneficiaries of the corporation.