Directions: Choose the letter of the best answer. 4 Why did banks often close in economic crises through the late 1800s? 43 A Banks did not loan out enough money, so they did not make much on interest. B Gold mines closed down and there was not enough gold to exchange for paper money. C There was no national system to increase the supply of money or credit. 42 Which statement best describes the Federal Reserve System? D Banks and railroads were commonly owned, and when railroads had trouble, banks closed. B A It was established in 1913 and lasted until the stock market crash of 1929. B It let private bankers control the economy through the interest rates on loans. C It was established in 1913 and continues to regulate the money supply today. D It was established in 1913 and backed U.S. currency with silver. By the end of the 1920s, buying slowed because A most people refused to borrow so they could buy more. most people owed more money than they could afford to pay back. C most people preferred to save money, rather than spend it. D most people believed there would be another world war. 44 During the 1920s, U.S. farmers A B C D 45 got help from the federal government to repay their debts. enjoyed the booming economy like many others. 46 continued to find a good market in Europe for their products. suffered from low prices and too much debt. How did high U.S. tariffs affect the economy during the 1920s? A Factories increased production to keep up with the demand for U.S. exports. B Foreign countries could not afford to buy U.S. exports or repay U.S. loans. C Prices for U.S. goods were kept high, so fewer people could afford to buy them. D U.S. companies fought tariffs because they believed in open markets. Which statement describes the way wealth was distributed during the 1920s? A Workers gained at a much higher rate than owners or the middle class. B The middle class gained much more than the owners or workers. C The richest people got much richer while working wages rose only slightly D Owners did not have enough to invest in new businesses.
Directions: Choose the letter of the best answer. 4 Why did banks often close in economic crises through the late 1800s? 43 A Banks did not loan out enough money, so they did not make much on interest. B Gold mines closed down and there was not enough gold to exchange for paper money. C There was no national system to increase the supply of money or credit. 42 Which statement best describes the Federal Reserve System? D Banks and railroads were commonly owned, and when railroads had trouble, banks closed. B A It was established in 1913 and lasted until the stock market crash of 1929. B It let private bankers control the economy through the interest rates on loans. C It was established in 1913 and continues to regulate the money supply today. D It was established in 1913 and backed U.S. currency with silver. By the end of the 1920s, buying slowed because A most people refused to borrow so they could buy more. most people owed more money than they could afford to pay back. C most people preferred to save money, rather than spend it. D most people believed there would be another world war. 44 During the 1920s, U.S. farmers A B C D 45 got help from the federal government to repay their debts. enjoyed the booming economy like many others. 46 continued to find a good market in Europe for their products. suffered from low prices and too much debt. How did high U.S. tariffs affect the economy during the 1920s? A Factories increased production to keep up with the demand for U.S. exports. B Foreign countries could not afford to buy U.S. exports or repay U.S. loans. C Prices for U.S. goods were kept high, so fewer people could afford to buy them. D U.S. companies fought tariffs because they believed in open markets. Which statement describes the way wealth was distributed during the 1920s? A Workers gained at a much higher rate than owners or the middle class. B The middle class gained much more than the owners or workers. C The richest people got much richer while working wages rose only slightly D Owners did not have enough to invest in new businesses.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter28: Monetary Policy And Bank Regulation
Section: Chapter Questions
Problem 33CTQ: The term moral hazard describes increases in risky behavior resulting from efforts to make that...
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