Before 1863
A)federally-chartered banks had regulatory advantages not granted to state-chartered banks.
B)the number of federally-chartered banks grew at a much faster rate than at any other time since the end of the Civil War.
C)banks acquired funds by issuing banknotes.
D)banks were required to maintain 100% of their deposits as reserves.

Question

Quizplus · Accepted Answer

Before 1863, banks acquired funds by issuing banknotes, which were redeemable for gold or silver upon presentation to the issuing bank. This was known as the "free banking era," and there were no federal regulations governing banks. Each state had its own laws and regulations, and some states allowed banks to operate with little oversight.