Which 1932 act provided state governments with funds to help the unemployed?

• A. Reconstruction Finance Corporation
• B. Home Loan Bank Act
• C. Agricultural Marketing Act
• D. Emergency Relief Act

Answer: (D)

During the Great Depression the government moved toward funding relief at the state level to directly help unemployed people. The Emergency Relief Act of 1932 was designed to supply federal money to state relief programs, enabling them to hire and support the unemployed and run relief efforts. This set the pattern of federal funds supporting state relief work, a step beyond purely lending to big institutions or shaping agricultural markets. The other acts had different aims: one focused on lending to banks and businesses when credit was tight, another on expanding home loans, and another on stabilizing farm prices. So the act that provided funds to state governments to help the unemployed is the Emergency Relief Act.