Topic 6 Vocab

Which term refers to a financial institution that accepts deposits and offers loans?

• Member Bank

• Bank Run

• Bank

• Federal Reserve Board

What type of bank is chartered by the national government and can issue currency?

• Central Bank

• Member Bank

• National Bank

• Commodity Bank

What happens during a 'bank run'?

• Banks issue more currency

• Banks foreclose on properties

• Customers withdraw deposits due to fear of insolvency

• Banks issue short-term loans

What name was given to the U.S. paper currency issued during the Civil War that wasn’t backed by gold or silver?

• Federal Reserve Notes

• Greenbacks

• Commodity Money

• Fiat Money

In which monetary system is currency directly linked to a specific amount of gold?

• Fiat Money System

• Greenback Standard

• Gold Standard

• Federal Reserve System

Which organization serves as the bank that lends to other banks in times of need?

• National Bank

• Federal Reserve Board

• Central Bank

• Member Bank

What are the 12 regional banks called that serve commercial banks within the Federal Reserve System and are the central banks in their respective districts?

• National Banks

• Federal Reserve Banks

• Central Banks

• Commercial Banks

Banks that hold stock in their regional Federal Reserve Bank and belong to the Federal Reserve are known as what?

• Commodity Banks

• National Banks

• Federal Reserve Banks

• Member Banks

Who oversees the policies and decisions of the Federal Reserve?

• The National Bank

• The Member Banks

• The Federal Reserve Board

• The Gold Standard Committee

What kind of loan is meant to be repaid within a year and used for temporary financial needs?

• Long-term Loan

• Short-term Loan

• Greenback Loan

• Federal Reserve Note