Which Problem with Cotton Did Eli Whitney Solve by Inventing

question 8

Multiple Choice

Which problem with cotton did Eli Whitney solve by inventing the cotton gin?

• A) Whitney figured out how to remove the cotton-destroying boll weevil and thereby save the cotton crop.
• B) Removing seeds from the cotton was a slow and painstaking task, but Whitney made it much easier and less labor-intensive.
• C) Processing cotton required too many different pieces of equipment, but Whitney figured out how to change the equipment more easily and quickly, saving time and money.
• D) Planting the cotton took too many hours to make its growth very profitable, but Whitney enabled planters to use a machine to speed the planting.
• E) The production of southern whiskey required the use of cotton in purifying the liquor, but the cotton absorbed too much liquid; Whitney's machine changed that.

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Definitions:

Hedging Relationship

A risk management strategy where two or more financial instruments are used together to offset potential losses in investments.

Hedged Item

A recognized asset or liability, unrecognized firm commitment, or highly probable forecast transaction in a hedging relationship.

Hedge Effectiveness

The degree to which a hedge transaction reduces the risk of fluctuations in the cash flows or value of an underlying exposure.

Hedge Effectiveness

A measure of how well a hedge transaction reduces the risk of the exposure that the hedge was intended to protect against.