20. Historically, financial panics have occurred because:

depositors have lost faith in the quality of bank loans

banks issued banknotes that were fully backed by gold

too many banks held excess reserves

banks paid lower interest rates to depositors than they charged their borrowers

21.Commercial banks are able to create money because:

their customers must purchase deposit insurance

they do not have to hold any reserves to cover their deposits

they are not classified as financial institutions

the United States has a fractional reserve system

NO EXPLANATION REQUIRED