What impacts did the decentralization of the U.S. banking system during the Free Banking Era have to one the currency in the United States? Select the two correct answers.

Question

a. The purchasing power currencies issued by state banks varied wildly from state to state
b. Monetary reserves decreased
c. The money supply declined
d. The amount of loanable funds increased.
e. Land was frequently purchased with counterfeit currency

Answer 1

The correct answers regarding the impacts of the decentralization of the U.S. banking system during the Free Banking Era on the currency in the United States are:

a. The purchasing power currencies issued by state banks varied wildly from state to state.
e. Land was frequently purchased with counterfeit currency.

These options reflect the significant variability and lack of uniformity in currency value as well as issues related to the prevalence of counterfeit money during that era.