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Which summarizes a major cause of the Panic of 1819?

Responses

The charter of the Second Bank of the United States expired a year before the crisis hit. The charter of the Second Bank of the United States expired a year before the crisis hit. - no response given

The Second Bank of the United States deliberately created a speculative bubble. The Second Bank of the United States deliberately created a speculative bubble. - no response given

High land prices and difficulty accessing credit prevented people from buying farms. High land prices and difficulty accessing credit prevented people from buying farms. - incorrect

High prices for agricultural goods, cheap land, and easy credit created a speculative bubble.

Respuesta :

One cause of the Panic of 1819 was the bank's lending practices. Banks allowed too many banking notes and lines of credit to be released that were not backed by hard currency. When banks had to call in loan payments, farms were foreclosed, which led to bank failures.

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