Question 1

The need to issue paper money increased with the frequent use of checks.

Accepted Answer

A) True 
 B)False

Question 2

Describe the developments in the national banking system from 1790 to 1863.

Accepted Answer

The national banking system underwent si

Question 3

Discuss the banking crisis management techniques of Pierpont Morgan.Integrate Davis' (1963)thesis in identifying why Morgan,a private individual,was involved in bank management crisis.?Why did the Federal Reserve System initially adopt some form of his techniques?

Accepted Answer

Pierpont Morgan, a private individual, p

Question 4

The Populists succeeded in using the federal government to limit subsidies granted to corporations.

Accepted Answer

A) True 
 B)False

Question 5

Out of the various types of M1 (demand deposits,coins and bank notes),only demand deposits

Accepted Answer

A)  can be used to generate loans by banks. 
B)  serve as a medium of exchange. 
C)  serve as a unit of account. 
D)  store value. 
A)  can be used to generate loans by banks. 
B)  serve as a medium of exchange. 
C)  serve as a unit of account. 
D)  store value.

Question 6

Financial intermediation supports economic growth and development by bringing together numerous savers and investors in growing and increasingly complex markets.

Accepted Answer

A) True 
 B)False

Question 7

Discuss the drive to regulated banking through the public sector and through the private sector.Chapter 12 complements Chapter 19 in providing information required to complete this essay.

Accepted Answer

The drive to regulate banking through th

Question 8

Davis (1963)compares U.S.and British industrialization.What does he note in each country during industrialization?

Accepted Answer

A)  A rise in the number of giant banks in both countries 
B)  A rise in the number of small banks in the U.S. but a rise in the number of giant banks in ?Great Britain 
C)  A rise in the number of small banks in Great Britain but a rise in the number of giant banks in?the U.S. 
D)  A decrease in capital accumulation because of a small number of free banks 
A)  A rise in the number of giant banks in both countries 
B)  A rise in the number of small banks in the U.S. but a rise in the number of giant banks in ?Great Britain 
C)  A rise in the number of small banks in Great Britain but a rise in the number of giant banks in?the U.S. 
D)  A decrease in capital accumulation because of a small number of free banks

Question 9

Under the bimetallic system,when did the U.S.experience a depletion in its reserve species?

Accepted Answer

A)  When imports exceeded exports 
B)  When exports exceeded imports 
C)  When the U.S. closed its borders to all international trade 
D)  When the trading partners of the U.S. refused all U.S. imports 
A)  When imports exceeded exports 
B)  When exports exceeded imports 
C)  When the U.S. closed its borders to all international trade 
D)  When the trading partners of the U.S. refused all U.S. imports

Question 10

Describe the disadvantages that unexpected inflation places on (i)people living on fixed incomes,?(ii)workers whose wages and salaries are set by contracts,and (iii)creditors.

Accepted Answer

(i) People living on fixed incomes suffe

Question 11

Between 1865 and 1914,individuals in households could use the income they did not spend to ?do what?

Accepted Answer

A)  Purchase stocks 
B)  Buy bonds 
C)  Place money in savings accounts 
D)  All of the above 
A)  Purchase stocks 
B)  Buy bonds 
C)  Place money in savings accounts 
D)  All of the above

Question 12

How do banks and financial intermediation support economic growth and development?

Accepted Answer

A)  By helping businesses secure the funds needed for capital accumulation and technology advancements 
B)  By assisting customers in buying durable and nondurable goods and services 
C)  By financing government expenditures when tax revenue falls below planned spending 
D)  By granting loans to foreign-born individuals to invest in countries outside of the U.S. 
A)  By helping businesses secure the funds needed for capital accumulation and technology advancements 
B)  By assisting customers in buying durable and nondurable goods and services 
C)  By financing government expenditures when tax revenue falls below planned spending 
D)  By granting loans to foreign-born individuals to invest in countries outside of the U.S.

Question 13

Merchant banks and land mortgage companies were the result of the expansions in the transportation and industrial systems.

Accepted Answer

A) True 
 B)False

Question 14

Revisit the Quantity Theory of Money from Chapter 3.Identify the relationship between an increase in the supply of money and inflation.

Accepted Answer

The Quantity Theory of Money states that

Question 15

Contrary to Populist views,the lending practices during industrialization provided ample opportunities for firms and agriculturalists to invest,grow and develop.

Accepted Answer

A) True 
 B)False

Question 16

Which is considered fiat money?

Accepted Answer

A)  Greenbacks 
B)  Gold coins 
C)  Silver dollars 
D)  Silver certificates 
A)  Greenbacks 
B)  Gold coins 
C)  Silver dollars 
D)  Silver certificates

Question 17

What is the Federal Reserve System? What are its current functions?

Accepted Answer

The Federal Reserve System, often referr

Question 18

Economic institutions like the Federal Reserve System of 1914 created by legislation are designed to:

Accepted Answer

A)  Only achieve economic goals 
B)  Garner votes 
C)  Satisfy the well organized interests of ?special groups 
D)  All of the above 
A)  Only achieve economic goals 
B)  Garner votes 
C)  Satisfy the well organized interests of ?special groups 
D)  All of the above

Question 19

Until 1863,National Banking was a mix of licensing by state charters,banking done by nonchartered private bankers,and free banking.

Accepted Answer

A) True 
 B)False

Question 20

Investment banks specialize in

Accepted Answer

A)  Managing borrowing and the deposits of its customers 
B)  Managing commercial papers 
C)  Facilitating the loan interactions between banks and merchants 
D)  Handling long-term securities such as stocks, bonds and other securities. 
A)  Managing borrowing and the deposits of its customers 
B)  Managing commercial papers 
C)  Facilitating the loan interactions between banks and merchants 
D)  Handling long-term securities such as stocks, bonds and other securities.

Exam 19: Financial Developments 1863–1914

The need to issue paper money increased with the frequent use of checks.

Describe the developments in the national banking system from 1790 to 1863.

Discuss the banking crisis management techniques of Pierpont Morgan.Integrate Davis' (1963)thesis in identifying why Morgan,a private individual,was involved in bank management crisis.?Why did the Federal Reserve System initially adopt some form of his techniques?

The Populists succeeded in using the federal government to limit subsidies granted to corporations.

Out of the various types of M1 (demand deposits,coins and bank notes),only demand deposits

Financial intermediation supports economic growth and development by bringing together numerous savers and investors in growing and increasingly complex markets.

Discuss the drive to regulated banking through the public sector and through the private sector.Chapter 12 complements Chapter 19 in providing information required to complete this essay.

Davis (1963)compares U.S.and British industrialization.What does he note in each country during industrialization?

Under the bimetallic system,when did the U.S.experience a depletion in its reserve species?

Describe the disadvantages that unexpected inflation places on (i)people living on fixed incomes,?(ii)workers whose wages and salaries are set by contracts,and (iii)creditors.

Between 1865 and 1914,individuals in households could use the income they did not spend to ?do what?

How do banks and financial intermediation support economic growth and development?

Merchant banks and land mortgage companies were the result of the expansions in the transportation and industrial systems.

Revisit the Quantity Theory of Money from Chapter 3.Identify the relationship between an increase in the supply of money and inflation.

Contrary to Populist views,the lending practices during industrialization provided ample opportunities for firms and agriculturalists to invest,grow and develop.

Which is considered fiat money?

What is the Federal Reserve System? What are its current functions?

Economic institutions like the Federal Reserve System of 1914 created by legislation are designed to:

Until 1863,National Banking was a mix of licensing by state charters,banking done by nonchartered private bankers,and free banking.

Investment banks specialize in

Overseas Empire

Colonial Development

America on the Eve of Revolution

Gaining Independence

Westward Expansion

Population and Labor Force

Law and the Rise of Classical American Capitalism

Transportation, Internal Improvements, and Urbanization

Agricultural Expansion: The Conflict of Two Systems on the Land

The Debate over Slavery

The Early Industrial Sector

The Financial System and the International Economy

Economic Effects of the Civil War

Railroads and Economic Development

Post-Civil War Agriculture

Population Growth and the Atlantic Migration

Industrialization, Entrepreneurship, and Urban Growth

Big Business and Government Intervention

The Giant Economy and Its International Relations

Labor and the Law

The Command Economy Emerges: World War I

Normalcy”: 1919–1929

The Great Depression

The New Deal

The “Prosperity” of Wartime

Before the New Frontier: The Postwar Economy

Population, Health, and Labor

Postwar Industry and Agriculture

To the New Millennium and Beyond

Does Our Past Have a Future?

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