What Was the Purpose of the "Subtreasury Plan

question 47

Multiple Choice

What was the purpose of the "subtreasury plan"?

• A) It promoted deflation by withdrawing silver certificates from circulation.
• B) It reestablished the gold standard.
• C) It reclaimed unused land from the railroads.
• D) It allowed farmers to secure low-interest government loans.
• E) It said that the national bank could pull supplemental cash from private banks.

---

Definitions:

Discount

A reduction from the usual cost of something, often used as a sales strategy to encourage purchases.

Amortize

The process of spreading out a loan or intangible asset cost over a specific period of time for accounting and tax purposes.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer; it is not indicative of the security's market value.

Semiannually

Happening biannually or once every six months.