Banking & Financial Services - Federal Reserve System

The _____ created a uniform national currency and a system of banks.

• Office of the Comptroller of the Currency
• National Currency Act
• National Banking Act of 1863 and 1864
• era of free banking

Who developed the First Bank of the United States?

• Alexander Hamilton
• George Washington
• Thomas Jefferson
• Andrew Jackson

Which of the following is not a tool used by the Fed to conduct monetary policy?

• The prime rate.
• Open market operations.
• The discount rate.
• Reserve requirements.

Which of the following is not a function of the Fed?

• Printing new currency.
• Providing financial services to the US government.
• Supervising and regulating banking industries.
• Establishing the nation's monetary policy.

Which of the following is the governing body of the Federal Reserve System?

• The Board of Governors
• The Office of the Comptroller of the Currency
• The Federal Reserve Bank
• The Federal Open Market Committee

Intended to be used as currency, promised immediate payment by the bank that issued the note and backed by a government bond

• bank note
• reserve requirement
• prime rate
• Office of the Comptroller of the Currency (OCC)

Widespread worry that banks do not have enough money to cover customer demands for withdrawals

• bank panic
• bank note
• reserve requirement
• prime rate

Occurs when a large number of depositors withdraw all of their money from a bank at the same time due to fear that their money is unsafe

• bank run
• bank panic
• bank note
• reserve requirement

The governing body of the Federal Reserve System

• Board of Governors (BOG)
• bank run
• bank panic
• bank note

Represents money a government or company has borrowed from the bondholder

• bond
• Board of Governors (BOG)
• bank run
• bank panic