By the Time of the Civil War, the U

question 106

Multiple Choice

By the time of the Civil War, the U.S. banking system operated

• A) as an efficient model that many other countries copied.
• B) under the control of the first Federal Reserve System.
• C) inefficiently with different banks issuing different types of currencies.
• D) much the same as it does today.

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Definitions:

Negotiable

Capable of being transferred or exchanged for value between parties, often referring to financial instruments like checks or bills of exchange.

Negotiable Instrument

A written, signed document that promises payment of a specified sum of money to the bearer or a named party.

Pay To The Order

A directive on a negotiable instrument, such as a check, indicating that the designated amount should be paid to the entity or person specified.

Drawer

The person who writes or issues a check, draft, or bill of exchange, thereby creating an obligation to pay.