The Immediate Cause of the Panic of 1819 Was

question 1

Multiple Choice

The immediate cause of the Panic of 1819 was

• A) the flooding of the American market with cheap British goods.
• B) the collapse of the Bank of the United States.
• C) the Transcontinental Treaty of 1819.
• D) the difficulty of obtaining credit.
• E) a sudden collapse of cotton prices.

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Definitions:

Market Price

The current price at which goods or services are bought and sold in a competitive marketplace.

Price Floor

A floor price established by the government or regulatory authority, representing the lowest legal selling price for a specific product or service.

Market Efficiency

The degree to which stock prices reflect all available, relevant information, making it impossible to consistently achieve higher returns.

Surplus

A situation where the quantity of a product or service supplied exceeds the quantity demanded at the current price.