The Panic of 1873 Began When

question 18

Multiple Choice

The panic of 1873 began when:

• A)the Federal Reserve began to require banks to hold reserves and meet capital requirements.
• B)the Civil War started.
• C)Jay Cooke and Co., a financial firm that was heavily invested in the railroad industry, failed.
• D)Franklin Delano Roosevelt declared a bank holiday.

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Definitions:

Legal Document

A document that states some contractual relationship or grants some right, serving as official evidence of an agreement.

Business Transaction

An economic event or activity that changes an entity's financial statements, involving the exchange of goods, services, or funds between two or more parties.

Shortage Cost

Costs incurred from not having enough inventory or resources to meet demand, leading to potential lost sales.

Storage Costs

Expenses incurred for storing goods or materials until they are used or sold, which can impact a company's overall profitability.