Central Bank and Federal Reserve Act free essay sample

Americans’ fear of centralized power and their distrust of moneyed interests explains why the U. S. did not have a central bank until the A) 17th century. B) 18th century. C) 19th century. D) 20th century. Answer: D 2) Bank panics in 1819, 1837, 1857, 1873, 1884, 1893, and 1907 convinced many that A) the Federal Reserve needed greater control over the banking system. B) the Federal Reserve needed greater authority to deal with problem banks. C) a central bank was needed to prevent future financial panics. The unusual structure of the Federal Reserve System is perhaps best explained by A) Americans’ fear of centralized power. B) the traditional American distrust of moneyed interests. C) Americans’ desire to remove control of the money supply from the U. S. Treasury. D) all of the above. E) only (A) and (B) of the above. Answer: E 4) The traditional American distrust of moneyed interests and the fear of centralized power help to explain A) the failures of the first two experiments in central banking in the United States. We will write a custom essay sample on Central Bank and Federal Reserve Act or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page B) the decentralized structure of the Federal Reserve System.C) why the Board of Governors of the Federal Reserve System is not located in New York. D) all of the above. E) only (A) and (B) of the above. Answer: D 72 5) The financial panic of 1907 resulted in such widespread bank failures and substantial losses to depositors that the American public finally became convinced that A) the First Bank of the United States had failed to serve as a lender of last resort. B) the Second Bank of the United States had failed to serve as a lender of last resort. C) the Federal Reserve System had failed to serve as a lender of last resort. A  central bank was needed to prevent future panics. Answer: D 6) Nationwide financial panics in 1873, 1884, 1893, and 1907 might have been avoided had A) the First Bank of the United States served its intended role of lender of last resort. B) the Second Bank of the United States served its intended role of lender of last resort. C) the Second Bank of the United States not been abolished in 1836 by President Andrew Jackson. D) the Federal Reserve served its intended role of lender of last resort. Answer: C 7) The many regional Federal Reserve banks resulted from a compromise between parties favoring  Ã‚  establishment of a central bank and those opposed to its establishment. B) a private central bank and those favoring a government institution. C) establishment of the Board of Governors in Washington, D. C. and those preferring its establishment in New York City. D) none of the above. Answer: B 8) Which of the following is an element of the Federal Reserve System? A) The Federal Reserve Banks B) The Board of Governors C) The FDIC D) All of the above E) Only (A) and (B) of the above Answer: E 9) Which of the following is an element of the Federal Reserve System?