The Legal Tender Act of 1862 was significant because it:
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Correct answer: Authorized the creation of 'Greenbacks' not backed by gold or silver
To finance the war, the Union issued paper money known as Greenbacks. This was a major shift in American fiscal policy, as it established a national currency that relied on public trust in the government rather than specie.
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More Economic and Social Impacts questions
- Which of the following was a primary reason for the hyperinflation experienced by the Confederacy?
- The National Bank Act of 1863 was designed to:
- The Homestead Act of 1862 encouraged Western settlement during the war by:
- The Morrill Land Grant Act (1862) had a long-term social impact by:
- The 1863 New York City Draft Riots were largely fueled by:
- How did the Civil War affect the Northern industrial economy?