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Would the Maximum Loan That a Bank Can Make Be

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Essay

Would the maximum loan that a bank can make be different when receiving a discount loan from the Federal Reserve of $1 million versus receiving a checking account deposit of $1 million? Explain why or why not.


Definitions:

Indian Removal Act

1830 law signed by President Andrew Jackson that permitted the negotiation of treaties to obtain the Indians’ lands in exchange for their relocation to what would become Oklahoma.

Five Civilized Tribes

A collective term for five Native American nations—the Cherokee, Chickasaw, Choctaw, Creek (Muscogee), and Seminole—that were considered "civilized" by Anglo-European settlers during the 19th century because of their adoption of many colonial customs.

Seminole

A Native American people originally from Florida, known for their resistance against US forces during the Seminole Wars.

Force Act

1833 legislation, sparked by the nullification crisis in South Carolina, that authorized the president’s use of the army to compel states to comply with federal law.

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