Question 1

Provisions of the National Bank Act of 1863 included all of the following except

Accepted Answer

A) mandated legal reserve requirements for banks chartered under the Act. 
B) the requirement that banks chartered under the Act purchase a certain amount of US government bonds. 
C) the creation of a currency with a standard design. 
D) the creation of a central bank responsible for serving as a lender of last resort and an overseer of the money supply. 
A) mandated legal reserve requirements for banks chartered under the Act. 
B) the requirement that banks chartered under the Act purchase a certain amount of US government bonds. 
C) the creation of a currency with a standard design. 
D) the creation of a central bank responsible for serving as a lender of last resort and an overseer of the money supply. D

Question 2

Most of the increase in total money supply between 1860 and 1920 was due to

Accepted Answer

A) an increase in national bank notes. 
B) the growth of bank deposits. 
C) an increase in greenbacks. 
D) new discoveries of gold and silver. 
A) an increase in national bank notes. 
B) the growth of bank deposits. 
C) an increase in greenbacks. 
D) new discoveries of gold and silver. C

Question 3

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. C

Question 4

Market barriers imposed on national banks

Accepted Answer

A) included both restrictions on mortgages and high capital requirements. 
B) allowed rural banks to charge higher rates. 
C) allowed national banks to price discriminate. 
D) All of the above are correct. 
E)  Only a and b are correct. 
A) included both restrictions on mortgages and high capital requirements. 
B) allowed rural banks to charge higher rates. 
C) allowed national banks to price discriminate. 
D) All of the above are correct. 
E)  Only a and b are correct.

Question 5

Between the years 1879 and 1900 America was on a de facto gold standard.Which of the following statements is not true about the 20-year period that preceded these years?

Accepted Answer

A) The nominal money supply grew faster than the population growth rate. 
B) A policy of money contraction was initiated that caused deflation. 
C) There existed efforts to resume an exchange of one dollar in greenbacks to one dollar in gold. 
D) Resumption of the gold standard threatened to reduce the stock of gold because of relatively cheaper foreign goods. 
A) The nominal money supply grew faster than the population growth rate. 
B) A policy of money contraction was initiated that caused deflation. 
C) There existed efforts to resume an exchange of one dollar in greenbacks to one dollar in gold. 
D) Resumption of the gold standard threatened to reduce the stock of gold because of relatively cheaper foreign goods.

Question 6

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 7

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 8

The years between 1896 and World War I were characterized by

Accepted Answer

A) rapidly 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) rapidly 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 9

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 10

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 11

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 12

Which of the following statements most accurately describes the role of banks in the United States between the Civil War and WWI?

Accepted Answer

A) The U.S. ,which had the largest economy in the world,also had the largest banks in the world. 
B) Banking reforms increased the ability of state banks to issue their own notes. 
C) Compared to state banks,national banks generally had higher reserve requirements and more restrictions on how they could handle their assets. 
D) Those who borrowed money at fixed interest rates gain significantly during deflationary periods. 
A) The U.S. ,which had the largest economy in the world,also had the largest banks in the world. 
B) Banking reforms increased the ability of state banks to issue their own notes. 
C) Compared to state banks,national banks generally had higher reserve requirements and more restrictions on how they could handle their assets. 
D) Those who borrowed money at fixed interest rates gain significantly during deflationary periods.

Question 13

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 14

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 15

In accordance with the "Fisher effect,"

Accepted Answer

A) farmers with mortgages could benefit from inflation. 
B) expectation of inflation could trigger higher interest rates for mortgages. 
C) if silver inflation was expected,farmers could command lower interest rates when renewing a mortgage. 
D) All of the above are correct. 
E)  Only a and b are correct. 
A) farmers with mortgages could benefit from inflation. 
B) expectation of inflation could trigger higher interest rates for mortgages. 
C) if silver inflation was expected,farmers could command lower interest rates when renewing a mortgage. 
D) All of the above are correct. 
E)  Only a and b are correct.

Question 16

During the post-Civil War debate over resuming the exchange of gold for greenbacks,

Accepted Answer

A) members of the Greenback party argued the returning to gold was not worth the economic pain. 
B) Republicans argued that those who had loaned money to the government during the Civil War had the right to be paid in gold. 
C) Republican argued that due to the Public Credit Act of 1869,bondholders were not required to be paid in gold. 
D) None of the above is correct. 
E)  Only a and b are correct. 
A) members of the Greenback party argued the returning to gold was not worth the economic pain. 
B) Republicans argued that those who had loaned money to the government during the Civil War had the right to be paid in gold. 
C) Republican argued that due to the Public Credit Act of 1869,bondholders were not required to be paid in gold. 
D) None of the above is correct. 
E)  Only a and b are correct.

Question 17

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 18

Persistent U.S.deflation between 1879 and the mid-1890s was primarily due to the fact that the ___________ was growing faster than the _________.

Accepted Answer

A) supply of money;demand for money 
B) demand for money;supply of money 
C) demand for money;demand for goods 
D) demand for goods;supply of money 
A) supply of money;demand for money 
B) demand for money;supply of money 
C) demand for money;demand for goods 
D) demand for goods;supply of money

Question 19

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 20

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.

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

Provisions of the National Bank Act of 1863 included all of the following except

Most of the increase in total money supply between 1860 and 1920 was due to

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

Market barriers imposed on national banks

Between the years 1879 and 1900 America was on a de facto gold standard.Which of the following statements is not true about the 20-year period that preceded these years?

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

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

The "greenback"

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

The Federal Reserve Act

Which of the following statements most accurately describes the role of banks in the United States between the Civil War and WWI?

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

Deflation

In accordance with the "Fisher effect,"

During the post-Civil War debate over resuming the exchange of gold for greenbacks,

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

Persistent U.S.deflation between 1879 and the mid-1890s was primarily due to the fact that the ___________ was growing faster than the _________.

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

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

Economic History

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 Western Movements

Transportation and Market Growth

Market Expansion 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

Mobilizing for War

The Roaring Twenties

The Great Depression

The New Deal

World War II

The Changing Role of the Federal Government

Government 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.

Persistent U.S.deflation between 1879 and the mid-1890s was primarily due to the fact that the ___ was growing faster than the _.