Download Quiz 10 - Ch. 19-20 - Weber State University

Economics 1740
VERSION A - MARK ON YOUR SCANTRON
ANSWER SHEET
Fall, 2002
Dr. Alston , Quiz #10, Walton and Rockoff, Chapters 19 & 20
1. Most of the increase in total money supply between 1860 and 1920 was due to
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.
2. Provisions of the National Bank Act of 1863 included all of the following except
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
U.S. 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.
3. Which of the following statements most accurately describes the role of banks in the
United States between the Civil War and WWI?
a. The United States, 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 gained significantly during
deflationary periods.
4. Americans who supported William Jennings Bryan and the “Free Silver” movement
a. advocated a reduction in the U.S. money supply.
b. included the U.S. 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.
5. The quantity theory of money relates the amount of money in the economy to which
three variables?
a. the proportion of income held as money, the price level, and real output
b. the proportion of income held as money, the price level, and the velocity of
money (number of times during the year that a dollar is changed from one person
to the other)
c. the wages of all individuals, profits for all businesses, and amount of money held
by government agencies
d. the wages of all individuals, the velocity of money, and gross domestic product
6. What is the most accurate statement about the fraction of the U.S. population that
lived in urban areas between 1800 and 1910?
a. The fraction of the U.S. population that lived in urban areas grew steadily
throughout the period.
b. The fraction of the U.S. population that lived in urban areas decreased steadily
throughout the period.
c. In 1910, about 85 percent of the U.S. population lived in cities over 100,000
people.
d. In 1800, more than half of the U.S. population lived in towns over 2,500 people.
7. Which of the following is least accurate in characterizing changes in retailing in the
second half of the 19th century?
a. large growth in the number of department stores
b. large growth in the number of chain stores
c. large growth in the number of “general stores”
d. large growth in the number of mail-order houses
8. Which statement is most accurate regarding U.S. trading patterns between 1850 and
1900?
a. The United States exported more finished manufacturers in 1850 than it did in
1900.
b. Raw materials accounted for a greater share of U.S. imports in 1850 than they did
in 1900.
c. Manufactured and raw foodstuffs accounted for about 75 percent of exports in
both 1850 and 1900.
d. In 1850, the largest U.S. export was raw materials and its largest import was
finished manufacturers.
9. Which statement most accurately describes the U.S. balance of payments?
a. From 1850-1873 the United States had an unfavorable balance of payments, but
exports exceeded imports from 1873-1919.
b. The United States had an unfavorable balance of payments from 1850-1919.
c. Exports exceeded imports from 1850-1919.
d. The United States had a favorable balance of payments from 1874 until World
War I. During the war, U.S. imports exceeded imports.
10. Which statement is least accurate about the U.S. experience with the income tax?
a. The federal income tax was not used for an extended period until after 1910.
b. In the late 1800s and early 1900s, people from the South and West were most
likely to support an income tax.
c. Increases in the income tax were justified by using the money for more generous
army pensions and increased military spending, especially for the U.S. Navy.
d. Provisions for the income tax were stated in the U.S. Constitution.
ANSWERS: Quiz No. 10, Econ 1740 Fall, 2002, Walton and Rockoff, Chapters 19 & 20,
Version A
1. ANSWER: b. the growth of bank deposits.
2. ANSWER: d. the creation of a central bank responsible for serving as a lender of last
resort and an overseer of the money supply.
3. ANSWER: c. Compared to state banks, national banks generally had higher reserve
requirements and more restrictions on how they could handle their assets.
4. ANSWER: c. wanted to increase the U.S. price level.
5. ANSWER: a. the proportion of income held as money, the price level, and real output
6. ANSWER: a. The fraction of the U.S. population that lived in urban areas grew
steadily throughout the period.
7. ANSWER: c. large growth in the number of “general stores”
8. ANSWER: d. In 1850, the largest U.S. export was raw materials and its largest import
was finished manufacturers.
9. ANSWER: a. From 1850-1873, the United States had an unfavorable balance of
payments, but exports exceeded imports from 1873-1919.
10. ANSWER: d. Provisions for the income tax were stated in the U.S. Constitution.
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