Question

What were some challenges to North Carolina’s banking system in the early 1800s? Check all that apply.

Answer 1

The following were the challenges faced by North Carolina’s banking system in the early 1800s:

There was too much paper currency -

The paper currency that was in circulation, which was actually a promissory note, had become a very common method of payment.

The problem of the storage and reciprocation of this currency had already started to become a huge problem.

Rural areas did not have many banks -

Though substantially large populations also lived in the rural areas, the network of banks had not yet reached rural areas. As a result, a large faction of the population was being left out of the banking system.

Bartering and trading were very common -

Though the system of paper money had bee introduced already, many people still continued to use the same old bartering system in which the exchanged commodities for commodities.