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:

• to help farmers repay debts: Farmers were struggling with debt, and an increase in the money supply through silver coinage was seen as a way to help them repay what they owed.

• to increase the money supply: The Act aimed to increase the money supply by requiring the government to purchase large amounts of silver, thus introducing more currency into circulation.

So the two correct answers are:

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