Because of the Abuses by State Banks and the Clear

question 18

Multiple Choice

Because of the abuses by state banks and the clear need for a central bank to help the federal government raise funds during the War of 1812,Congress created the

• A) First Bank of the United States in 1812.
• B) Bank of North America in 1814.
• C) Second Bank of the United States in 1816.
• D) Federal Reserve System in 1813.

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Definitions:

Historical Cost

The original monetary value of an asset or investment at the time of its acquisition.

Fair Value

Fair Value is a financial term describing the estimated worth of an asset or liability in the marketplace, based on current prices and considering factors like utility and risk.

Asset

Resources owned or controlled by a business that are expected to generate future economic benefits.

Fair Value Principle

Assets and liabilities should be reported at fair value (the price received to sell an asset or settle a liability).