A Level History - America - Practice Exam

What major legislation was passed in response to the economic challenges faced by farmers in the 1920s?

1. Agricultural Credit Act

2. National Industrial Recovery Act

3. Homestead Act

4. New Deal Legislation

The correct answer is: Agricultural Credit Act

The Agricultural Credit Act was a significant piece of legislation aimed at addressing the economic difficulties faced by farmers during the 1920s. This era was characterized by a dramatic drop in agricultural prices, which placed immense financial pressure on farmers who were already struggling with debt. The Agricultural Credit Act provided loans and financial support to farmers, enabling them to manage their debts and continue their operations. By facilitating access to credit, this act helped stabilize the agricultural sector during a time of economic disarray, reflecting the government's recognition of the need to support farmers who were crucial to the economy. In contrast, the National Industrial Recovery Act mainly focused on industrial sectors and did not specifically target agricultural issues. The Homestead Act, which aimed to encourage western migration and land settlement, was passed much earlier and was not a reaction to the 1920s economic struggles. While New Deal legislation also included provisions for the agricultural sector, it was broader in scope and emerged in response to the Great Depression rather than purely the challenges of the 1920s. Thus, the Agricultural Credit Act precisely addresses the urgent needs of farmers during that specific time period.