Why Did Proponents of "Soft Money" Advocate Issuance of Paper

question 18

Multiple Choice

Why did proponents of "soft money" advocate issuance of paper "greenbacks" and expanded coinage of silver?

• A) "Soft money" in circulation promoted inflation that would raise farm prices and reduce debt.
• B) "Soft money" would lower interest rates.
• C) Silver was more plentiful and valuable than gold.
• D) "Soft money" would lead to huge subsidies paid by consumers to business.

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Definitions:

Annuity

An economic device offering a steady series of disbursements to someone, commonly utilized as a financial support for retired individuals.

Market Rate

The prevailing rate at which a particular good, service, or asset is bought and sold in a free market.

Present Value

The current financial value of a future cash sum or series of inflows, adjusted with a determined rate of return.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its earnings before interest and taxes.