Prior to the establishment of the Federal Reserve System (1913), reserve requirements (a) limited the banks’ ability to lend. (b) did not restrict the amount of paper-money issued by banks. (c) freed banks to create as much money as the market could bear without regard for risk and withdrawal rates. (d) forced banks to place […]
Stampp (1976) finds evidence to suggest that the Southern slave owners were operating at losses, not profits. Indicate whether the statement is true or false ANSWER FALSE
On the eve of the Civil War, cotton was the major crop in the Old South. Indicate whether the statement is true or false ANSWER FALSE
Banking failures result when (a) banks do not hold 100 percent of their customers’ deposits in their vaults. (b) banks make loans. (c) bank withdrawals exceed their reserves. (d) all of the above occur. ANSWER (c)
According to Hughes and Cain (2011), what did the Populists want? (a) To use the federal government to redistribute income and wealth (b) A more direct democracy that limited the powers of state legislatures (c) A secret voting ballot and public education (d) All of the above ANSWER (d)
A strong majority of economists support the proposition that the material, not psychological, conditions of the slaves compared favorably with those conditions faced by industrial workers before the Civil War. Indicate whether the statement is true or false ANSWER FALSE
Davis (1963) compares U.S. and British industrialization. What does he note in each country during industrialization? (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 […]
A fundamental criticism of Time on the Cross is that economics cannot be used to simply compare the welfare of the slaves to their free, white counterparts. Indicate whether the statement is true or false ANSWER TRUE
What are demand deposits? (a) Money held by private individuals or corporations placed in depository accounts at banks (b) Liabilities (things that are owed) to banks and assets (things of value) to depositors or bank customers (c) Checking accounts that depositors can use on demand (d) All of the above ANSWER (d)
Out of the various types of M1 (demand deposits, coins and bank notes), only demand deposits (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. ANSWER (a)
