Final answer:
An imprest payroll account does indeed minimize the risk of payroll fraud by maintaining a fixed balance solely for payroll, which limits excess funds that could potentially be used fraudulently. Conversely, the Panic of 1819 reduced trust in the Second Bank of the United States due to the resulting economic hardship.
Step-by-step explanation:
True, an imprest payroll account does limit the client's exposure to payroll fraud. An imprest payroll system is a financial account with a set fixed balance from which payroll is processed. After each payroll period, the exact amount of the payroll is replenished, which means there are no extra funds in the account that could be susceptible to fraudulent activities. This process enhances security and makes it easier to track transactions and detect any irregularities.
To address the reference provided, it's important to note that the Panic of 1819 decreased the American people's faith in the Second Bank of the United States. This economic crisis was marked by a drop in world agricultural prices, and many blamed the Second Bank's policies for the deflation, bank failures, foreclosures, and widespread unemployment that followed. Therefore, the answer to the reference statement would be 'b. False'.