Question 1

Following the Civil War, U.S. forms of money included all of the following except :

Accepted Answer

A)  wooden nickels. 
B)  checks. 
C)  state bank notes. 
D)  greenbacks. 
A)  wooden nickels. 
B)  checks. 
C)  state bank notes. 
D)  greenbacks.

Question 2

Americans who supported William Jennings Bryan and the "Free Silver" movement

Accepted Answer

A)  advocated a reduction in the U.S. money supply. 
B)  included the US Secretary of the Treasury. 
C)  wanted to increase the U.S. price level. 
D)  wanted free railroad transport of silver from western mines to the east. 
A)  advocated a reduction in the U.S. money supply. 
B)  included the US Secretary of the Treasury. 
C)  wanted to increase the U.S. price level. 
D)  wanted free railroad transport of silver from western mines to the east.

Question 3

Which of the following most accurately describes the "Fisher effect?"

Accepted Answer

A)  Interest rates increase after inflation and decrease after deflation, but with a long lag. 
B)  Interest rates are independent of inflation and deflation. 
C)  Interest rates increase after inflation, but are not affected by deflation. 
D)  Increasing interest rates precede inflation and decreasing interest rates precede deflation. 
A)  Interest rates increase after inflation and decrease after deflation, but with a long lag. 
B)  Interest rates are independent of inflation and deflation. 
C)  Interest rates increase after inflation, but are not affected by deflation. 
D)  Increasing interest rates precede inflation and decreasing interest rates precede deflation.

Question 4

Deflation

Accepted Answer

A)  often accompanies increases in the money supply. 
B)  is good for borrowers, but bad for lenders. 
C)  is good for lenders, but bad for borrowers. 
D)  cannot occur under a bimetallic standard. 
A)  often accompanies increases in the money supply. 
B)  is good for borrowers, but bad for lenders. 
C)  is good for lenders, but bad for borrowers. 
D)  cannot occur under a bimetallic standard.

Question 5

The Federal Reserve Act

Accepted Answer

A)  established a clearinghouse system for checks and notes. 
B)  allowed only nationally-chartered banks to become members of the Federal Reserve system. 
C)  allowed the Fed District Banks to offer commercial loans to private businesses at reduced interest rates. 
D)  required that all Fed District Bank directors be associated with the commercial banking industry. 
E)  all of the above. 
A)  established a clearinghouse system for checks and notes. 
B)  allowed only nationally-chartered banks to become members of the Federal Reserve system. 
C)  allowed the Fed District Banks to offer commercial loans to private businesses at reduced interest rates. 
D)  required that all Fed District Bank directors be associated with the commercial banking industry. 
E)  all of the above.

Question 6

Between the Civil War and World War I, the U.S. monetary system

Accepted Answer

A)  experienced a persistent deflation. 
B)  suffered several financial crises in which banks closed and firms went bankrupt. 
C)  adopted a de facto gold standard. 
D)  adopted a central bank. 
E)  All of the above. 
A)  experienced a persistent deflation. 
B)  suffered several financial crises in which banks closed and firms went bankrupt. 
C)  adopted a de facto gold standard. 
D)  adopted a central bank. 
E)  All of the above.

Question 7

The Bland-Allison Act of 1878 and the subsequent Sherman Silver Purchase Act of 1890

Accepted Answer

A)  led to an extended period of inflation in the U.S. 
B)  were both followed by increases in the market price for silver. 
C)  had no significant impact on silver prices or the price level. 
D)  decreased the Treasury's supply of silver. 
A)  led to an extended period of inflation in the U.S. 
B)  were both followed by increases in the market price for silver. 
C)  had no significant impact on silver prices or the price level. 
D)  decreased the Treasury's supply of silver.

Question 8

What is not true of The Federal Reserve Act (1913)?

Accepted Answer

A)  Membership in the system was made compulsory for national banks. 
B)  State banks were not permitted to join the system. 
C)  The member banks nominally owned the Federal Reserve Banks. 
D)  Member banks had to deposit cash, previously held as reserves, with the District Federal Reserve Bank. 
A)  Membership in the system was made compulsory for national banks. 
B)  State banks were not permitted to join the system. 
C)  The member banks nominally owned the Federal Reserve Banks. 
D)  Member banks had to deposit cash, previously held as reserves, with the District Federal Reserve Bank.

Question 9

It has been argued that banks tended not to take full advantage of issuing notes, thereby passing up potential profits because

Accepted Answer

A)  the profit amounts were small. 
B)  they were not the types of profits conservative bankers wanted to pursue. 
C)  regulations and opportunity costs involved with the issuance itself limited the profits. 
D)  All of the above are correct. 
E)  Only a and c are correct. 
A)  the profit amounts were small. 
B)  they were not the types of profits conservative bankers wanted to pursue. 
C)  regulations and opportunity costs involved with the issuance itself limited the profits. 
D)  All of the above are correct. 
E)  Only a and c are correct.

Question 10

In the election of 1896, supporters of William McKinley included all of the following except

Accepted Answer

A)  advocates for the gold standard. 
B)  voters opposed to high tariffs. 
C)  industrial employers in the East. 
D)  Republicans. 
A)  advocates for the gold standard. 
B)  voters opposed to high tariffs. 
C)  industrial employers in the East. 
D)  Republicans.

Question 11

The "greenback"

Accepted Answer

A)  provided a uniform currency across the U.S. 
B)  provided additional revenue for the government during the Civil War. 
C)  supplied monetary increases that sent prices skyrocketing. 
D)  All of the above are correct. 
E)  Only a and b are correct. 
A)  provided a uniform currency across the U.S. 
B)  provided additional revenue for the government during the Civil War. 
C)  supplied monetary increases that sent prices skyrocketing. 
D)  All of the above are correct. 
E)  Only a and b are correct.

Question 12

In the late 1800s, problems with the U.S. banking system included

Accepted Answer

A)  uneven distribution of notes throughout the country. 
B)  varied banking regulations across states. 
C)  the use of "country bank" reserves to support call loans made by larger urban banks. 
D)  the tendency of commercial banks to reduce money and credit during recessions. 
E)  All of the above. 
A)  uneven distribution of notes throughout the country. 
B)  varied banking regulations across states. 
C)  the use of "country bank" reserves to support call loans made by larger urban banks. 
D)  the tendency of commercial banks to reduce money and credit during recessions. 
E)  All of the above.

Question 13

When the Coinage Act of 1873 was passed, silver was worth _________ on the market than at the mint; however, subsequent __________ in the supply of silver led to public outcry over the "demonetization" of silver under the Act.

Accepted Answer

A)  less; decreases 
B)  less; increases 
C)  more; decreases 
D)  more; increases 
A)  less; decreases 
B)  less; increases 
C)  more; decreases 
D)  more; increases

Question 14

The years between 1896 and World War I were characterized by

Accepted Answer

A)  moderately rising prices in the U.S. 
B)  wild fluctuations in international exchange rates. 
C)  the "heyday" of the gold standard in the U.S. and most industrialized countries. 
D)  barriers that prevented the flow of goods and capital across international borders. 
E)  All of the above. 
A)  moderately rising prices in the U.S. 
B)  wild fluctuations in international exchange rates. 
C)  the "heyday" of the gold standard in the U.S. and most industrialized countries. 
D)  barriers that prevented the flow of goods and capital across international borders. 
E)  All of the above.

Question 15

In 1865, Congress raised the tax on state bank notes to 10 percent of the value of notes in circulation.  Quantitative evidence shows that by 1900,

Accepted Answer

A)  state banks had ceased to exist. 
B)  the number of state banks had declined dramatically. 
C)  the number of state banks had increased dramatically. 
D)  the number of state banks was roughly the same as in 1865. 
A)  state banks had ceased to exist. 
B)  the number of state banks had declined dramatically. 
C)  the number of state banks had increased dramatically. 
D)  the number of state banks was roughly the same as in 1865.

Exam 19: Money, Prices, and Finance in the Postbellum Era

Following the Civil War, U.S. forms of money included all of the following except :

Americans who supported William Jennings Bryan and the "Free Silver" movement

Which of the following most accurately describes the "Fisher effect?"

Deflation

The Federal Reserve Act

Between the Civil War and World War I, the U.S. monetary system

The Bland-Allison Act of 1878 and the subsequent Sherman Silver Purchase Act of 1890

What is not true of The Federal Reserve Act (1913)?

It has been argued that banks tended not to take full advantage of issuing notes, thereby passing up potential profits because

In the election of 1896, supporters of William McKinley included all of the following except

The "greenback"

In the late 1800s, problems with the U.S. banking system included

When the Coinage Act of 1873 was passed, silver was worth _________ on the market than at the mint; however, subsequent __________ in the supply of silver led to public outcry over the "demonetization" of silver under the Act.

The years between 1896 and World War I were characterized by

In 1865, Congress raised the tax on state bank notes to 10 percent of the value of notes in circulation. Quantitative evidence shows that by 1900,

Growth, Welfare, and the American Economy

Founding the Colonies

Colonial Economic Activities

The Economic Relations of the Colonies

Economic Progress and Wealth

Three Crises and Revolt

Hard Realities for a New Nation

Land and the Early Westward Movements

Transportation and Market Growth

Market Expansion and Industry in First Transition

Labor During the Early Industrial Period

Money and Banking in the Developing Economy

The Entrenchment of Slavery and Regional Conflict

War, Recovery, and Regional Divergence

Agricultures Western Advance

Railroads and Economic Change

Industrial Expansion and Concentration

The Emergence of Americas Labor Consciousness

Commerce at Home and Abroad

World War I, 1914-1918

The Roaring Twenties

The Great Depression

The New Deal

World War Ii

The Changing Role of the Federal Government

The Changing Role of the Federal Government: Consumer Safety, Agriculture, the Environment, and Housing

Monetary Policy, Fiscal Policy, and the Business Cycle After World War Ii

Manufacturing, Productivity, and Labor

Achievements of the Past, Challenges for the Future

Filters

When the Coinage Act of 1873 was passed, silver was worth _ on the market than at the mint; however, subsequent __ in the supply of silver led to public outcry over the "demonetization" of silver under the Act.