American Institute of Certified Planners (AICP) Practice Exam

What was the primary effect of the Serviceman's Readjustment Act, commonly known as the GI Bill?

1. It promoted the creation of national parks

2. It guaranteed home loans to veterans

3. It funded art and cultural programs

4. It established new land regulations for agriculture

The correct answer is: It guaranteed home loans to veterans

The Serviceman's Readjustment Act, widely known as the GI Bill, had a significant impact on American society, primarily through its guarantee of home loans to veterans. This legislation, enacted in 1944, was designed to assist returning World War II soldiers in reintegrating into civilian life. By providing access to low-interest, federally-backed home loans without the need for a down payment, the GI Bill made homeownership attainable for a large number of veterans who might not otherwise have qualified for traditional loans. This program played a critical role in the post-war economic boom, leading to increased suburban development and the expansion of the American middle class. The ability to purchase homes contributed to a rise in demand for housing, which, in turn, stimulated construction and various related industries. While the other choices presented might touch on related governmental initiatives or programs, they do not capture the core intent and primary effect of the GI Bill. The focus on securing home loans highlights the legislation's immediate and lasting impact on the lives of millions of veterans and the broader American economy.