Why Did the Oil-Rich Nations of the Middle East Place

question 42

Multiple Choice

Why did the oil-rich nations of the Middle East place an embargo on oil sold to the United States in the 1970s?

• A)They wanted to punish the United States for helping Israel in the Yom Kippur War.
• B)They wanted to convince the United States to stay out of the affairs of the Middle East.
• C)They believed that the United States had pushed Israel to begin the Yom Kippur War.
• D)They resented the heavy import taxes levied by the United States.
• E)They believed that by supporting Israel, the United States was opposing communism.

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Definitions:

Money Supply

The collective value of all cash, bank deposits, and liquid financial resources existing in an economy at a particular time.

Secondary Reserves

Assets that are highly liquid but not as liquid as primary reserves; they can quickly be converted into cash or other assets to meet financial obligations.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, used to raise funds and manage the national debt.

Corporate Stock

Share in a corporation. The stockholders own the corporation.