Before the Panic of 1907, trusts became unprofitable because they used too much of their capital to form their own clearinghouses.

Question

Quizplus · Accepted Answer

This statement is not accurate. Trusts were still profitable before the Panic of 1907, and they did not use their capital to form clearinghouses. In fact, many trusts actually relied on existing clearinghouses to simplify their financial operations.

Before the Panic of 1907, Trusts Became Unprofitable Because They