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.

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Definitions:

Accounting Books

Official records that track financial transactions and the financial position of an entity.

District Of Columbia

The capital of the United States, Washington D.C., a federal district that houses the U.S. government's central institutions.

Virgin Islands

A group of tropical islands in the Caribbean Sea, divided into the US Virgin Islands and the British Virgin Islands, each territory with its own governance.

Partnership Interest

A partner’s ownership interest in a partnership which embodies the partner’s transferable interest and the partner’s management and other rights.