What impacts did the decentralization of the U.S. banking system during the Free
Banking Era have on the currency in the United States? Select the two correct answers.
(1 point)
• The purchasing power currencies issued by state banks varied wildly from state to state.
• Monetary reserves decreased.
• The money supply declined.
• The amount of loanable funds increased.
• Land was frequently purchased with counterfeit currency.
The two correct answers are:
1) The purchasing power of currencies issued by state banks varied wildly from state to state.
2) Land was frequently purchased with counterfeit currency.