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The Main Problem with the Banking System from 1864 to 1913

Question 245

Multiple Choice

The main problem with the banking system from 1864 to 1913 was that:


A) the Federal Reserve's monetary policy was too restrictive.
B) government budget deficits destabilized the system.
C) the money supply was not sufficiently responsive to local economic changes.
D) the currency was not uniform because each bank issued its own notes.

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