what occurred because of the Free Banking Era in the U.S?

Question

a. Monetary reserves increased
b. Land became easier to purchase
c. The U.S banking system experienced decentralization
d. Banks were unable to print more money

Answer 1

The correct answer is: c. The U.S banking system experienced decentralization.

During the Free Banking Era in the U.S. (approximately 1837 to 1863), banks were relatively free from federal regulation. This led to a decentralized banking system where many state-chartered banks issued their own banknotes and operated independently, often without sufficient reserves. While this increased the number of banks, it also resulted in varying degrees of stability and confidence in banknotes issued.