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)
Date: September 10th, 2020
Between 1790 and 1860, Southern population growth was dominated by growth in the slave population. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Fogel and Engerman (1974) find evidence to suggest that young slave children were often sold by profit-maximizing slave owners. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Today, financial intermediaries specialize in all of the following activities except (a) Printing money (b) Lending (c) Borrowing (d) Accepting deposits ANSWER (a)
Date: September 10th, 2020
Between 1865 and 1914, individuals in households could use the income they did not spend to do what? (a) Purchase stocks (b) Buy bonds (c) Place money in savings accounts (d) All of the above ANSWER (d)
Date: September 10th, 2020
Slaver owners were optimistic about the economic future of slavery on the eve of the Civil War. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The Federal Reserve System began operating in 1914, finally (a) giving the U.S. its first 100 percent gold-backed paper money. (b) creating a privately-owned system for clearing checks on a national scale. (c) giving the U.S. its first government-owned central bank. (d) giving the U.S. its first unified currency issue, the Federal Reserve Note. […]
Date: September 10th, 2020
The demand for slaves was increasing more rapidly in cities than on plantations. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The research of Gavin Wright (1978) on the antebellum period suggests that (a) there was no limit on the profitability of the plantation utilizing slave labor. (b) issues with management, communication and discipline limited the profitability of the slave plantation. (c) more than 75 percent of the Southern farms were plantations and utilized slave labor. […]
Date: September 10th, 2020
During a banking crisis during the period of free banking, the unexpected surge in the demand for money in the form of specie would cause bankers to call in loans which would, in turn, squeeze credit, slow output and increase unemployment. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
