What Caused Economic Problems for the Confederacy

question 124

Multiple Choice

What caused economic problems for the Confederacy?

• A) within the first year of the war, a majority of slaves refusing to do work
• B) the abundance of food and cotton creating a buyer's market
• C) the issuing of paper money
• D) an influx of immigrants creating high unemployment
• E) heavy taxing of large plantation owners

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Definitions:

Par Value

The nominal face value of a bond or stock as stated by the issuer, often used to determine interest payments.

Interest Rates

Interest rates are the cost of borrowing money expressed as a percentage of the total amount loaned, influencing economic activity by affecting spending and saving behaviors.

Premium

The amount paid for an insurance policy, or the extra cost for financial instruments or securities about their nominal or face value.

Duration

A measurement of the sensitivity of the price of a bond or other debt investment to changes in interest rates, typically expressed in years.