A Series of Bank Failures and a Cash Shortage in 1907

question 247

True/False

A series of bank failures and a cash shortage in 1907 led to the establishment of the Federal Reserve System in 1913.

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Definitions:

Insurance Expense

The amount a company spends on insurance policies to cover various risks, recorded as an expense in the accounting period in which it is incurred.

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.

Credit

In accounting, it refers to the entry that decreases assets or increases liabilities and equity on the company's balance sheet.

Collections

The act of seeking out the settlement of debts from businesses or individuals.