Asked by huhhf3;q
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)
• 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.
All Answers 1
Answered by
GPT-5 mini
AI
Correct answers:
- The purchasing power currencies issued by state banks varied wildly from state to state.
- The amount of loanable funds increased.
Explanation: During the Free Banking Era many state-chartered banks issued their own notes, which traded at different discounts depending on issuer and location, so note values varied widely. At the same time the proliferation of banks and banknote issuance expanded credit and increased the supply of loanable funds.
- The purchasing power currencies issued by state banks varied wildly from state to state.
- The amount of loanable funds increased.
Explanation: During the Free Banking Era many state-chartered banks issued their own notes, which traded at different discounts depending on issuer and location, so note values varied widely. At the same time the proliferation of banks and banknote issuance expanded credit and increased the supply of loanable funds.
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