Which of the Following Statements Accurately Describes the Way in Which

question 82

Multiple Choice

Which of the following statements accurately describes the way in which the Confederacy funded the war?

• A) The Confederacy largely relied on the work of immigrants to continue to fuel southern industry during wartime, increasing the number of consumer goods for sale.
• B) Because the larger Confederacy did not have its own Congress, efforts to fund the war were left entirely to the varying legislation of individual state governments.
• C) Because enslaved African Americans on plantations rarely fought as soldiers or managed to escape, the cotton economy remained strong and helped finance the war effort.
• D) The Confederate Congress issued many taxes, which were poorly enforced, as well as large amounts of paper money, which caused economic distress due to price increases.
• E) The Confederate Congress relied heavily on British and French foreign aid, as the southern cotton economy was in such disarray due to the war.

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Definitions:

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments.

Time Value of Money

The concept that money available today is worth more than the same amount in the future due to its potential earning capacity.

Capital Investment Project

A project undertaken by a business to acquire or upgrade physical assets such as property, industrial buildings, or equipment to create future benefits.