Why Did Virginia Oppose Having the Federal Government Assume the State's

question 29

Multiple Choice

Why did Virginia oppose having the federal government assume the state's war debt as proposed by Secretary of the Treasury Hamilton?

• A) Virginians were against close ties between state and federal governments.
• B) This plan would force the state of Virginia into bankruptcy.
• C) Virginia already paid its own debts.
• D) Virginians did not want to pay for the bad decisions of New Yorkers.

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Definitions:

Adjusting Entry

An accounting entry made into a journal at the end of an accounting period to allocate income and expenditure to the appropriate periods.

Interest Payable

A liability account showing the amount of interest expense that has been incurred but not yet paid.

Nominal Interest Rate

The stated interest rate of an investment or loan without accounting for inflation or compounding interest effects.

Nominal Interest Rate

The stated interest rate on a loan or financial instrument, not accounting for inflation or other factors that affect the real interest rate.