The Following Elements Helped Cause the Panic of 1819 and Exacerbate

question 24

Multiple Choice

The following elements helped cause the Panic of 1819 and exacerbate its adverse economic effects except  

• A) the overextension of credit by western banks to dubious business and unwise ventures.
• B) the overspeculation in frontier lands by the Bank of the United States through its western branches.
• C) the absence of a sound, central national monetary policy by the federal government.
• D) the coercive loan call-in and foreclosure demands imposed by the Bank of the United States.
• E) a devastating agricultural drought throughout the nation in 1818-1819.

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Definitions:

Full Consolidation

An accounting method where the parent company integrates the financial statements of all its subsidiaries, regardless of the percentage of ownership, into one consolidated set of financial statements.

Ownership Proportion

The percentage of shares or interest held in an entity, determining the extent of control or influence an owner has over that entity.

AASB 3

The Australian Accounting Standards Board standard that deals with the accounting treatment for business combinations.

Fair Value Method

An accounting strategy that assesses assets or liabilities at their current market value, rather than at historical cost or future projected value.