Why Did the South Fail to Attract Significant Economic Development

question 26

Multiple Choice

Why did the South fail to attract significant economic development in the wake of Reconstruction?

• A) Northern investors stayed away, appalled by southern race relations.
• B) Northerners considered a South without African-Americans in chains too risky for investment.
• C) Investors came to the South for cheap labor and low taxes, so they made few capital investments in the region.
• D) Southern white supremacists tended to scare off northern capital industries.
• E) Southern Klansmen scared away many interested investors.

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Definitions:

Double-entry Bookkeeping System

A method of bookkeeping where every entry to an account requires a corresponding and opposite entry to a different account, ensuring the accounting equation is always in balance.

Fraud

A deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Trial Balance

A bookkeeping report that lists the balances in each general ledger account at a specific time, ensuring that debits equal credits.

Individual Accounts

Financial accounts that are owned by a single individual, as opposed to joint accounts owned by multiple parties.