Who issued paper currency in the United States during the first half of the 19th century? Question 14 options:

The National Bank

state banks

local banks

The Federal Reserve

The federal reserve

The correct answer is B) state banks.

State banks issued paper currency in the United States during the first half of the 19th century.

The first form of money used in the Americas was the paper money issued in the Massachusetts Bay Colony. The National Banking Act of the 1800s, private banks were allowed to issue their notes in a unified currency system. The Federal Reserve banking system was established after the panic of 1907 to provide a safety net to investors and people.