Question

1:The 1929 New York bank insurance fund (“Safety Fund”) (a) would not have enough money to pay for all noteholders if things really went bad, then why would it increase the public’s confidence in banks? (b) What did it mean that the Fund represented the idea that “banking was a system... not just an aggregation of free agents?"

2:In the 1820s, two Massachusetts legal cases ruled in favor of defendants who caused economic damage to others while pursuing activities that helped their own businesses. Years later that same court ruled in favor a company whose employees were seriously injured at work. Briefly discuss how these cases could be explained as decisions which encouraged social change and economic progress.

3:In 1807, President Jefferson stopped all trade between the United States and Europe with the Embargo Act. (a) How did that Act help United States manufacturers? (b) Why did the Embargo Act particularly support the manufacturing of cotton goods (textiles) in the northeast United States?

4:Henry Clay and the Whig Party supported tariffs. (a) What were tariffs and how would they protect domestic industry? (b) How, in particular, would they protect “infant industries”? (c) What other important role did tariffs provide to the United States in the 19th century?

5:More than most other countries, the courts play a vital role in the evolution of law in the United States. How do courts do this (a) when there already exists written (statutory) law and (b) when there is no particular statute law regarding a particular issue, that is, what is “common law”?

Answer 1

Answer 1

Part A :The banking system plays an important role in the modern economic world. Banks collect the savings of the individuals and lend them out to business- people and manufacturers. ... Thus, the banks play an important role in the creation of new capital (or capital formation) in a country and thus help the growth process. In other word you can say bank is trusted agent between country and its citizen. Also represent the country outside the boundries.

But banks kept a portion of their reserves as cash in their vaults and the bulk of their reserves as deposits in correspondent banks in designated cities. Many, but not all, of the ultimate correspondents belonged to the Federal Reserve System. This reserve pyramid limited country banks’ access to reserves during times of crisis.  When a bank needed cash, because its customers were panicking and withdrawing funds en masse, the bank had to turn to its correspondent, which might be faced with requests from many banks simultaneously or might be beset by depositor runs itself. Than federal system not having cash and they refuse the customer request

Part B : As de in point A . Bank just react as a trust agent who work between federal revenue department and its various monetry agenices . Every transaction of bank closily monitor by government and bank are allowed to keep mimimum cash with himself and rest are transferred to country by way of loan and other mode. So we can say bank is intermedier

Answer 2  

In the first scanario ,, two Massachusetts legal cases ruled in favor of defendants who caused economic damage because Economic damages are the financial losses and expenses from a defendant's negligent behavior. They are tangible expenses that include items such as medical bills, car repair, pay stubs for lost days at work,

But in the second case,  years later that same court ruled in favor a company whose employees were seriously injured at work. because that time situation is changed as compared to previous one becasue that time economy is in pressure and must have chance they could use lighter tools or anything for negligencies. But in second case , reason can be anything apart.But it is ideally company duty to favour his employee in this injuries time.

Answer 3

Part A - An embargo is a powerful tool that can influence a nation, both economically and politically. The ability to easily trade goods all over the world is key to maximizing the economic prosperity of a country. When that is no longer possible, it can have serious negative consequences.In the ear when governmenet imposes embargo , then local manufacturer in USA getting chance to expand their level in local market. After embargo they did not have international pressure of rate and other factor that spoil local market

Part B The decisions on trade embargoes and other economic sanctions made by the United States are provide special benifit to cotton mills business because now they can purchase material from local market and produced inhouse good and sold them on fair price. Previously they faced problem before embargo act.

Answer 4

Part A -Tariffs are a tax on imports paid by importing companies in the country that imposed the tax. The cost is usually passed on to consumers. Tariffs are meant to protect domestic industries by raising prices on their competitors' products.

Part B - They reduce sales taxes for introductory products. They shield new industries in the early stages of their development from the competition of more mature rivals. They raise the trade barriers for imports of child-care products.

Part C - Tariffs have historically served a key role in the nation's foreign trade policy.Their purpose was to generate revenue for the federal government and to allow for import substitution industrialization (industrialization of a nation by replacing foreign imports with domestic production) by acting as a protective barrier around infant industries. They also aimed to reduce the trade deficit and the pressure of foreign competition. Tariffs were one of the pillars of the American System that allowed the rapid development and industrialization of the United States.