What occurred during the free banking era? the dollar bill was introduced. the second bank of the united states was established. repaying of loans was not closely monitored. currency varied widely from state to state.

The correct answer would be option D, Currency varied widely from state to state.

Explanation:

Free banking era is the era in which the banks were free to issue their own paper currency. They had no regulations to issue those notes. That Era was free from all types of monetary regulations. This era started in 1837 and lasted till 1862. Before that era, banks were bound to set aside the same amount of gold or precious things if they wish to issue more currency notes.  But during this era of Free banking, there were no such regulations. Due to this free banking monetary policy, the currency varied widely from state to state. A lot of currency was available and the transactions were widely held. The circulation of money notes increased that had both positive and negative impacts on the economy of the country.

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