Most economists today agree that a situation like the Panic of 1907 is unlikely to recur because
A) of better bank management; unwise investments are very rare.
B) our economy is no longer as dependent on the banking system as in the past.
C) most people entrust only a small percentage of their money to banks.
D) Congress has removed the burden of public regulation, freeing banks to be more profitable.
E) government oversight and deposit insurance have given people more faith in banks than they used to have.

Question

Quizplus · Accepted Answer

Government oversight and deposit insurance have given people more faith in banks than they used to have. This has created a more stable banking system and decreased the likelihood of panics or runs on the banks.

Most Economists Today Agree That a Situation Like the Panic