Which is true about the Northwest Ordinance of 1787? The Northwest Ordinance encouraged slave owners to settle in the Northwest Territories. The Northwest Ordinance guaranteed freedom for any slave who escaped to the Northwest Territories. The Northwest Ordinance banned the institution of slavery in the Northwest Territories. The Northwest Ordinance ensured that any new free state would be balanced by a new slave state.

The Northwest Ordinance banned the institution of slavery in the Northwest Territories.  

Explanation:

The northwestern ordinance stated that the states present in that region would be totally free from slavery and that no forced labor would be accepted for citizens who were not paying for their crimes. However, if a slave escaped from a farm in a state that allowed slavery and went to take shelter in the northwestern states and its "owner" claimed it, that slave would be returned to its "owner" and should suffer the consequences of escape that the home state allowed.

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