What Problem with Cotton Did Eli Whitney Solve by Inventing

question 5

Multiple Choice

What problem with cotton did Eli Whitney solve by inventing the cotton gin?

• A) Whitney figured out how to remove the cotton-destroying boll weevil and thereby save the cotton crop.
• B) Removing seeds from the cotton was a slow and painstaking task, but Whitney made it much easier and less labor-intensive.
• C) Processing cotton required too many different pieces of equipment, but Whitney figured out how to change the equipment more easily and quickly, saving time and money.
• D) Planting the cotton took too many hours to make its growth very profitable, but Whitney enabled planters to use a machine to speed the planting.
• E) The production of southern whiskey required the use of cotton in purifying the liquor, but the cotton absorbed too much liquid; Whitney's machine changed that.

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Definitions:

Yield-To-Maturity

The total return anticipated on a bond if it is held until it matures, including all payments from interest and principal, calculated as an annual rate.

Zero-Coupon Bond

A bond that does not pay periodic interest payments and is sold at a discount from its face value. The bond's profit comes from the difference between its purchase price and its face value at maturity.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, including interest payments and the difference between the bond’s purchase price and its face value.

Maturity Value

The amount payable to the holder of a financial instrument at its maturity date, including the principal and any accrued interest.