The Financial Panic of 1907 Resulted in Such Widespread Bank

question 53

Multiple Choice

The financial panic of 1907 resulted in such widespread bank failures and substantial losses to depositors that the American public finally became convinced that

• A)the First Bank of the United States had failed to serve as a lender of last resort.
• B)the Second Bank of the United States had failed to serve as a lender of last resort.
• C)the Federal Reserve System had failed to serve as a lender of last resort.
• D)a central bank was needed to prevent future panics.

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Definitions:

Thomas Malthus

An English cleric and scholar influential in the fields of political economy and demography, best known for his theory that population growth would outpace agricultural production leading to famine.

Average Worker

The Average Worker concept statistically represents a standard or mean measurement of labor productivity, performance, or characteristics within a specific workforce or economy.

Healthcare Costs

The total expenditures required for individuals to receive medical services, treatments, and medications, often a significant portion of a country's economy.

GDP

Gross Domestic Product; the total value of all goods and services produced within a country in a specific time period.