One of the Major Weaknesses of the Banking System Before

question 160

Multiple Choice

One of the major weaknesses of the banking system before the Federal Reserve System was set up was

• A) the arrangement for holding reserves.
• B) the lack of a deposit insurance system.
• C) a lack of currency and coin.
• D) an inadequate supply of government bonds.

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.