UPDATED ACTUAL Exam Questions and
CORRECT Answers
Reconstruction Finance Corporation - CORRECT ANSWER - a government agency
established during the Hoover administration which provided emergency relief by loaning money
to failing businesses
Bonus Army - CORRECT ANSWER - a protest movement of World War I veterans in
1932 demanding early payment of service bonuses not due until 1945 to help them through the
Great Depression and to provide a stimulus for the economy
Smoot-Hawley Tariff - CORRECT ANSWER - originally designed to protect American
industries by raising the cost of imported goods but resulted in a trade war as other nations also
raised their tariffs, leading to a huge decrease in international trade
Glass-Steagall Act - CORRECT ANSWER - established the Federal Deposit Insurance
Corporation (FDIC) which guaranteed all bank deposits up to $5000 and separated commercial
banks (could take deposits and make loans with government guarantees) and investment banks
(could invest in the stock market at their own risk)
New Deal - CORRECT ANSWER - a term for the programs and legislation developed
during Franklin Roosevelt's administration aimed at ending the Great Depression
Fireside chats - CORRECT ANSWER - speeches broadcast nationally over the radio in
which President Franklin Roosevelt explained complex issues and programs in plain language
Economy Act - CORRECT ANSWER - gave FDR the power to cut government workers'
salaries, reduce payments to military veterans for non-service-connected disabilities, and to
reorganize federal agencies in the interest of reducing expenses; expanded the role of the
presidency more then any other act prior to it
, Federal Emergency Relief Act (FERA) - CORRECT ANSWER - granted federal funds to
state and local agencies to help the unemployed; pumped $500 million into state welfare
programs
Civilian Conservation Corps (CCC) - CORRECT ANSWER - the most popular New Deal
agency, through which unemployed young men worked in rural camps planting forests, pruning
trees, building parks, and shoring up the nation's wild lands
Agricultural Adjustment Act - CORRECT ANSWER - sought to shore up farm prices with
a program to plow under 10.5 million acres of cotton and slaughter 6 million piglets
Civilian Works Administration (CWA) - CORRECT ANSWER - a short-lived U.S. job
creation program established by the New Deal during the Great Depression to rapidly create
manual labor jobs for 4 million men & women, mainly improving or constructing buildings and
bridges
Public Works Administration (PWA) - CORRECT ANSWER - helped construction
workers get jobs doing public projects (highways, bridges, sewers)
National Industrial Recovery Act (NIRA) - CORRECT ANSWER - a law enacted to
establish codes of fair practice for industries and to promote industrial growth; established
National Recovery Administration (NRA) to set maximum hours and minimum wages for
workers & stimulated industry by fixing prices and setting production limits
Agricultural Adjustment Administration (AAA) - CORRECT ANSWER - subsidized
farmers; designed to raise agricultural prices by paying farmers not to farm; based on the
assumption that higher prices would increase farmers' purchasing power and thereby help
alleviate the Great Depression
Securities and Exchange Commission (SEC) - CORRECT ANSWER - monitors the stock
market and enforces laws regulating the sale of stocks and bonds to prevent another stock market
crash