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:

Experimental Designs

Research methods that involve the manipulation of one or more variables to determine their effect on other variables, ideally with random assignment to treatment conditions.

Preexperimental Designs

Research designs that lack the rigor of true experimental setups, notably in the absence of a control group or random assignment.

Descriptive Laboratory Studies

Research experiments conducted in a controlled environment that aim to describe behaviors, functions, or processes.

Internal Validity

The extent to which a study accurately demonstrates a causal relationship between variables without being influenced by external factors.