What impacts did the decentralization of the U.S. banking system during the Free Banking Era have on the currency in the United States? Select the two correct answers.(1 point)

Question

Responses

The purchasing power currencies issued by state banks varied wildly from state to state.

Monetary reserves decreased.

The money supply declined.

The amount of loanable funds increased.

Land was frequently purchased with counterfeit currency.

Answer 1

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

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

These options highlight the discrepancies and challenges in the currency system during that era.