A Level History - America - Practice Exam

What kind of loans did the Second Agricultural Adjustment Act offer to farmers?

1. Low-interest loans for expansion

2. Direct grants for equipment purchases

3. Loans during years of overproduction

4. Subsidies for organic farming practices

The correct answer is: Loans during years of overproduction

The Second Agricultural Adjustment Act was designed to address the issues of agricultural overproduction and declining prices. It provided loans specifically aimed at helping farmers manage their production levels more effectively during years when overproduction occurred. This approach served to stabilize farmers' incomes and regulate supply in the market, ensuring that prices would not plummet due to excess production. The other options do not align with the primary intent of the Second Agricultural Adjustment Act. Low-interest loans for expansion would imply a focus on growth rather than stabilization during overproduction. Direct grants for equipment purchases suggest a different form of financial assistance that was not the main aim of the Act. Subsidies for organic farming practices relate to a broader agricultural policy not specifically addressed by this legislation focused on the depression in crop prices due to overproduction.