Why was the Sherman Silver Purchase Act passed? Select the two correct answers.
Answer 1A: To shrink the money Supply
Answer 2B: to help farmer repay debts
Answer 3C: To increase the money supply
Answer 4D: To replace the gold standard with silver
Answer 5E: To eliminate silver from the money supply
The correct answers are:
Answer 2B: to help farmer repay debts
Answer 3C: To increase the money supply
The correct answers are:
Answer 2B: To help farmers repay debts
Answer 3C: To increase the money supply
To determine why the Sherman Silver Purchase Act was passed, we need to analyze the options provided and select the correct answers.
Answer 1A: To shrink the money supply - Incorrect. The Sherman Silver Purchase Act was actually aimed at increasing the money supply, not shrinking it.
Answer 2B: To help farmers repay debts - Correct. One of the main reasons behind the passage of the Sherman Silver Purchase Act was to assist farmers in repaying their debts. By increasing the money supply, it was hoped that it would lead to inflation and thus make it easier for farmers to pay off their debts.
Answer 3C: To increase the money supply - Correct. The primary purpose of the Sherman Silver Purchase Act was to increase the money supply by requiring the government to purchase large amounts of silver and issue it as currency. This was done with the intention of stimulating the economy.
Answer 4D: To replace the gold standard with silver - Incorrect. While the Sherman Silver Purchase Act did promote the use of silver as currency, it did not aim to replace the gold standard entirely. The country was still on the gold standard during this period.
Answer 5E: To eliminate silver from the money supply - Incorrect. The Sherman Silver Purchase Act was actually enacted to increase the use of silver as currency, not eliminate it.
Therefore, the two correct answers are:
2B: To help farmers repay debts
3C: To increase the money supply