The 1819 panic was caused by the Second Bank of the United States, which called on the state banks to redeem their notes in order to acquire $4 million in specie to pay the borrowing that had been undertaken in Europe in 1803 to finance the Louisiana

Which of the following is a tool that is used by the Fed to control the quantity of money?

A) open market operations B) excess reserves C) government expenditure multiplier D) real interest rate

Which of the following statements are TRUE?

A) A bank's assets are its sources of funds. B) A bank's liabilities are its uses of funds. C) A bank's balance sheet shows that total assets equal total liabilities plus equity capital. D) A bank's balance sheet indicates whether or not the bank is profitable.