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Prior to the Establishment of the Federal Reserve System (1913),reserve

Question 22

Multiple Choice

Prior to the establishment of the Federal Reserve System (1913) ,reserve requirements


A) limited the banks' ability to lend.
B) did not restrict the amount of paper-money issued by banks.
C) freed banks to create as much money as the market could bear without regard for risk and withdrawal rates.
D) forced banks to place deposits in the national bank.

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