Question

The banking panic of 1907 and the resulting cash shortage led to the formation of the: A. Federal Reserve System.B. Comptroller of the Currency.C. Gold standard for currency, and the establishment of gold repository at Fort Knox.D. FDIC.

Answer 1

The banking panic of 1907 and the resulting cash shortage led to the formation of the Comptroller of the Currency.

Explanation:

The Office of the Comptroller of the Currency (OCC), established by National Currency Act of 1863 serves to supervise, regulate and charter all national banks, thrift institutions and all the other federally licensed branches in US. The current Comptroller of the Currency is Joseph Otting.

The banking panic of 1907 has been a main motivation in creating the 3rd central banking system in 1907–1913. This was initiated by failed speculation that led to bankruptcy of 2 brokerage firms.

The public started to panic that the trust and banking industries were experiencing liquidity crunches and had the currencies only to meet short-term or immediate obligations. This caused bank runs and set off the financial panic of 1907 nationwide and it lasted for months.