The Main Reaction to the Failure of the Articles of Confederation

question 14

Multiple Choice

The main reaction to the failure of the Articles of Confederation was to

• A) focus on resolving debates between the state governments.
• B) rein in the power of the national government.
• C) encourage stronger state governments.
• D) make the national government stronger.

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Definitions:

Liquidity

The ease with which an asset or security can be converted into ready cash without affecting its market price.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Current Ratio

A financial ratio indicating how well a firm can cover its short-term liabilities with its present assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business, whichever is longer.