Why did it take almost 100 years before the United States had its own national currency?
What will be an ideal response?
The writers of the U.S. Constitution feared a centralization of power so it provided states with a lot of power. This explains why state-chartered banks issued currency and also why anti-branching bank laws existed for so long. It wasn't until many of the state banks that issued currency failed and trade and travel between states increased that the need for a national currency was seen and a currency implemented.
You might also like to view...
The fact that trade policy often imposes harm on large numbers of people, and benefits only a few may be explained by
A) the lack of political involvement of the public. B) the power of advertisement. C) the problem of collective action. D) the basic impossibility of the democratic system to reach a fair solution. E) a cycle of political corruption.
In the probit model Pr(Y = 1|X1, X2,..., Xk) = ?(?0 + ?1X1 + ?2X2 + ... + ?kXk),
A) the ?'s do not have a simple interpretation. B) the slopes tell you the effect of a unit increase in X on the probability of Y. C) ?0 cannot be negative since probabilities have to lie between 0 and 1. D) ?0 is the probability of observing Y when all X's are 0
Cheating on a collusive agreement is more likely when
a. a price floor is in effect b. firms are located in the same state c. it is easy to observe the other firms' prices d. there is a small number of firms e. market demand is unstable
The theory of efficient markets implies:
A. expectations do not play a role in stock prices because this isn't real information. B. the price at which stocks currently trade only reflect past information. C. the chartists are in fact correct that there are patterns in stock prices. D. stock prices should be highly unpredictable.