Mock Practice Test-4
Read each of the following passages and answer the items that follow. Your answers to these items should be based on the passages only.
The Emergency Banking Act foretold at the very outset the direction in which the New Deal was to go. With the whole financial system in a state of collapse, the President might have turned towards the left, with social revolution somewhat after the Russian pattern as his goal. Had he directed Congress to nationalise the banking system, a long step towards the state ownership and administration of all industry and finance would have been taken. He might also have turned to the right, towards what, in contrast with communism, was currently called fascism, and drew its inspiration from the exploits of Mussolini in Italy. His goal then would have been to preserve profit system at the expense, if need be, of democracy. But neither communism nor fascism had any deep footing in America, and one seemed as likely as the other to develop into an irresponsible dictatorship. There is evidence that the President considered either. What he proposed was a middle course more in line with American precedents. The business of the nation should be left in private hands, but controls should be set by government to prevent the ever-recurring booms and crises from which capitalism had suffered so long. Extreme individualism had already been limited by extensive governmental regulation; what Roosevelt had in mind was to extend regulation; to the point where it would result in a planned economy. The powers of government would be amplified, but the rights of the individual would not be destroyed. In addition to this interest in permanent reform, the President was determined also to make more adequate provision for the relief of the unemployed and to promote by every means at his disposal the restoration of a normal business prosperity.
The steps taken by the New Deal were introduced in response to:
A the Depression
B the Second World War
C Hitlar’s rise to power in Germany
D the threat of communism