ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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small, independent banks with no charters
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The Bank of the United States
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state-chartered banks
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savings and loans banks
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Detailed explanation-1: -The period between 1837 and 1863 is known as the Free Banking Era. This period was dominated by state-chartered banks. Many did not have enough gold and silver to back their paper money. During the Civil War, Congress enacted important bank reforms.
Detailed explanation-2: -Wildcat banking refers to the banking industry in parts of the United States from 1837 to 1865, when banks were established in remote and inaccessible locations. During this period, banks were chartered by state law without any federal oversight.
Detailed explanation-3: -The National Banking Acts of 1863 and 1864 marked an important moment in the development of the U.S. banking system. Congress passed these bills as a wartime expedient to (i) help finance the war effort by increasing the demand for federal government debt and (ii) promote a stable uniform currency.
Detailed explanation-4: -National Bank Act of 1863 The act allowed the creation of national banks, set out a plan for establishing a national currency backed by government securities held by other banks, and gave the federal government the ability to sell war bonds and securities (in order to help the war effort).