-What Was the Economic Significance of Eli Whitney's Cotton Gin

question 2

Multiple Choice

-What was the economic significance of Eli Whitney's cotton gin?

• A) Cotton production doubled since it became easier to clean cotton.
• B) Slavery declined as field workers were replaced with machinery.
• C) New England factory production slowed down since cotton could be converted to textiles in the South.
• D) The American economy faltered since most cotton products sent to Britain had high tariffs.

Understand the role of planning budgets in financial management.

Interpret income statements to identify variances from budgeted figures.

Evaluate the financial health of a business by analyzing its budget variances.

Understand the basic concepts and significance of budgeting in management.

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Definitions:

Money Supply

is the total amount of monetary assets available in an economy at any given time.

Bond Sale

A bond sale involves the issuance of bonds by an entity to raise capital, where buyers are essentially loaning money to the issuer for a predetermined time period, with the promise of interest payments.

Federal Reserve

The central banking system of the United States, which regulates the U.S. monetary and financial system.

Required Reserve Ratios

The fraction of deposits that regulators require a bank to hold in reserve and not lend out, to ensure bank liquidity.