157k views
0 votes
The U.S. financial system encountered a number of “financial panics” before 1913 since there was not a _______________ to make loans to troubled commercial banks.

User Pankajt
by
7.9k points

1 Answer

2 votes
There was not a treasury department or a central bank. Basically, they needed a higher institution to get them out of problems if they ever got into one because the country didn't want to let banks go out of business. So eventually a treasury department would be created and the banks would be protected from failure because the state would help them stay in business.
User JeremyD
by
8.1k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.