Why did the speculative investments by trusts during the 1907 panic lead to economic instability?

• A. Trusts had lower reserve requirements, allowing them to take on riskier investments.
• B. Trusts were heavily regulated, preventing any significant economic impact.
• C. Trusts primarily invested in government bonds, ensuring stability.
• D. Trusts were unaffected by the panic due to their conservative investment strategies.

Answer: (A)