Why was the sherman silver purchase ast passed? Select the two correct answers
to shrink the money supply
to help farmers repay debts
to increase the money supply
to replace the gold standard with silver
to eliminate silver from the money supply
The correct answers are:
1. to help farmers repay debts
2. to increase the money supply
The Sherman Silver Purchase Act was passed for the following two reasons:
1. To help farmers repay debts: The act was intended to assist farmers, who were facing economic difficulties, in repaying their debts by increasing the money supply and therefore making it easier for them to obtain loans and pay off their obligations.
2. To increase the money supply: Another purpose of the Sherman Silver Purchase Act was to boost the money supply in the United States. This was achieved by requiring the federal government to purchase and mint millions of ounces of silver each month, which resulted in an increase in the amount of currency in circulation.
To determine why the Sherman Silver Purchase Act was passed, we need to evaluate each of the options provided and identify the correct ones based on historical context.
1. To shrink the money supply: The Sherman Silver Purchase Act was actually aimed at expanding the money supply, so this is not a correct answer.
2. To help farmers repay debts: This is one of the correct answers. The Act was passed, in part, to assist farmers who were struggling with mounting debts by increasing the amount of currency in circulation.
3. To increase the money supply: This is the other correct answer. The primary goal of the Sherman Silver Purchase Act was to increase the amount of money in circulation, particularly through the purchase and coinage of silver.
4. To replace the gold standard with silver: While the Act did have some impact on the monetary system, it was not explicitly passed to replace the gold standard with silver. Therefore, this is not a correct answer.
5. To eliminate silver from the money supply: This is also an incorrect answer. The Act did the opposite by promoting the purchase, coinage, and circulation of silver.
In conclusion, the two correct answers for why the Sherman Silver Purchase Act was passed are: to help farmers repay debts and to increase the money supply.