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.

Respuesta :

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.
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