Which of the Following Best Describes Wildcat Banking

question 38

Multiple Choice

Which of the following best describes wildcat banking?

• A) The Bank of the United States kept a close eye on rural banks and tamed financial institutions that seemed to run wild with their lending practices.
• B) East coast bankers used the term to ridicule western banks in remote areas.
• C) The term refers to excessively high interest rates at the Bank of the United States.
• D) The term refers to the unregulated expansion of hundreds of paper currencies that appeared across the country in the wake of the dissolution of the Bank of the United States.
• E) The term describes the practice of western banks to accept furs and skins from trappers as collateral.

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Definitions:

Term Deposit

A fixed-term investment held at a financial institution that pays interest until a specified maturity date.

Simple Interest Rates

The rate at which interest is calculated solely on the initial amount of capital, without compounding.

Principal Investment

The original amount of money invested or loaned, on which basis interest and returns are calculated.

GIC

Stands for Guaranteed Investment Certificate, a secure investment that promises to return your principal plus interest.