Study Guide for Exam 3
Exam 3 will be held in our regular classroom on Monday, November 15. The exam will cover the
following sections of the syllabus:
II. The Reunification Era: Southern Stagnation, Western Expansion & the Industrial Revolution (c. 1865-
Money and Banking after the Civil War
Walton & Rockoff, Chap 19 (Focus on p. 338-341, including Fig 19.1 & 19.2, and p.
Rockoff, Hugh, “The Wizard of Oz as a Monetary Allegory,”
The Journal of Political
, Vol. 98, No. 4, (August 1990), pp. 739-760.
IV. Boom and Bust (c. 1920-1940)
The Economy of the Roaring Twenties
Walton & Rockoff, Chap 22
To prepare for the exam, please review the assigned reading in the text, your lecture notes and
Assignments 7-10. Remember that the topic outlines (posted on eLC) are ONLY outlines; they are not an
adequate substitute for good lecture notes. As you review, pay particular attention to figures and tables
that we discussed in class.
The exam will consist of 35-40 true/false and multiple choice questions. Upon completing the exam, you
must turn in your scantron and your exam booklet. However, you will be given a separate sheet on which
to record your answers. You will be able to check your answers using the answer keys that will be posted
on eLC following the exam. For the exam, you will need a
#2 pencil and a picture ID
Below you will find some questions to use as a guide to your studying. While this list is not exhaustive
does illustrate the types of questions you should be prepared to answer. Be sure to review economic
terms/theories, such as: deflation, quantity theory of money, velocity, monetary policy, fiscal policy,
1. Other than metal coins, what types of money circulated in the U.S. in the late 1800s? If the U.S. had a
bimetallic standard, why did it operate on a
gold standard for most of the late 1800s?
2. Use the Quantity Theory of Money (QTM) and Figures 19.1-19.2 to discuss the relationship between
the money supply (M) and the price level (P) in the late 19
3. During the Civil War, the U.S. was forced to suspend payment of specie. Why? Use data from Table
19.2 to support your answer.
4. What had to happen in order for specie payment to resume following the Civil War? Using the QTM,
describe and explain the differing views of Republicans and Democrats on this issue. Describe the actual
events that eventually led to resumption of specie payment in 1879. Use data from Table 19.2 to support