why was the sherman silver purchase act 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 two 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 reasons:
1) To help farmers repay debts: One of the reasons for passing the act was to assist farmers in repaying their debts. By increasing the demand for silver, the act aimed to raise silver prices, which in turn would increase the income of farmers.
2) To increase the money supply: Another reason for passing the act was to increase the money supply. The act mandated the government to purchase and coin a large quantity of silver, which would then circulate as currency, effectively expanding the money supply.
Therefore, the two correct answers are:
- To help farmers repay debts.
- To increase the money supply.
To determine why the Sherman Silver Purchase Act was passed, we can analyze the given options and identify the correct answers.
1. To shrink the money supply: This answer is incorrect. The purpose of the Sherman Silver Purchase Act was not to reduce the money supply. In fact, one of its main objectives was to increase the money supply.
2. To help farmers repay debts: This answer is partially correct. The Sherman Silver Purchase Act intended to aid farmers, particularly those in debt. By increasing the money supply, it aimed to create inflation, which would make it easier for farmers to repay their debts with less valuable money.
3. To increase the money supply: This answer is correct. The Sherman Silver Purchase Act was passed to boost the money supply in the United States. It mandated the government to purchase a substantial amount of silver each month, which would be converted into silver-backed currency.
4. To replace the gold standard with silver: This answer is incorrect. The Sherman Silver Purchase Act was not intended to replace the gold standard with silver. The gold standard remained in place, and the Act focused on expanding the use of silver as a monetary metal alongside gold.
5. To eliminate silver from the money supply: This answer is incorrect. On the contrary, the Sherman Silver Purchase Act aimed to increase the use of silver in the country's monetary system.
Therefore, the two correct answers are:
- To help farmers repay debts
- To increase the money supply