Chapter 16 Section 1 Quiz

This series of serious bank runs finally convinced Congress to act and address concerns within the nation's banking system, resulting in the Federal Reserve Act of 1913.

• Second Bank of 1836
• Panic of 1907
• Scare of 1900
• Stock Market Crash

The actions the Federal Reserve takes to influence the level of real GDP and the rate of inflation in the economy.

• Board of Governors
• Federal Reserve Districts
• monetary policy
• Federal Open Market Committee

Why does the Federal Reserve System have a higher degree of political independence?

• the system has only advisory power
• it is divided into geographical districts
• the governors are appointed for life terms
• the system is owned by the banks

This is a seven member board that oversees the Federal Reserve System.

• Board of Governors
• Federal Reserve Districts
• House of Representatives
• Board of Regents

How many Federal Reserve Districts are there?

• 8
• 12
• 24
• 52

What is the subject of Federal Open Market Committee decisions?

• appointment of members of the Federal Reserve's Board of Governors
• chartering of new banks and other lending institutions
• level of interest rates and growth of the money supply
• scheduling of banking days and hours for member banks

Who appoints the members of the Board of Governors of the Federal Reserve?

• the state legislatures of the states represented
• the state governors
• the U.S. Senate
• the U.S. President

What banks must join the Federal Reserve system?

• all nationally chartered banks
• all state-chartered banks
• all banks of any kind
• no banks must join; membership is voluntary