Which agency pumped $15 billion into the economy to restart banks and businesses?

• A. Reconstruction Finance Corporation
• B. Public Works Administration
• C. Works Progress Administration
• D. Federal Emergency Relief Administration

Answer: (A)

When a country is in a banking crisis and credit has dried up, the move is to get lenders back in action and restore confidence in the financial system. The agency designed for that purpose was the Reconstruction Finance Corporation. It used government funds to provide loans and guarantees to banks, railroads, and large businesses, effectively pumping capital into the economy to restart lending and keep key enterprises afloat. The other agencies focused on creating jobs through public works or giving direct relief to the unemployed, rather than acting primarily as lenders to banks and big industries. So, the Reconstruction Finance Corporation best fits the description of pumping money into the economy to restart banks and businesses.