Why was the Sherman Silver Purchase Act passed? Select the two correct answers.

Question

(1 point)
to shrink the money supply
• to help farmers repay debts
to increase the money supply
to replace the gold standard with silver
to eliminate silver from the money supply

Answer 1

The Sherman Silver Purchase Act was passed primarily for the following reasons:

1. to help farmers repay debts - Many farmers were struggling with debt and deflation, and increasing the money supply through the purchase of silver was seen as a way to help alleviate their financial burdens.

2. to increase the money supply - The act aimed to boost the money supply by requiring the government to purchase a certain amount of silver each month, which was an attempt to increase economic activity and combat deflation.

So the correct answers are:

• to help farmers repay debts
• to increase the money supply