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EC - The History of American Banking Flashcards | StudBud
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EC - The History of American Banking
What occurred during the Free Banking Era?
What happened when the Bank's charter expired?
EC - The History of American Banking
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1
What happened when the Bank's charter expired?
state governments began issuing bank notes that they couldn't back
they started a new one with a new name brand
Andrew Jackson was so heartbroken he passed away
the wildcat banks became stronger
2
What occurred during the Free Banking Era?
The Second Bank of the United States was established.
Currency varied widely from state to state.
The dollar bill was introduced.
Repaying of loans was not closely monitored.
3
What must a bank do in order to be a "member bank?"
Take an oath.
have enough gold to protect its assets.
belong to the Fed.
be open on all holidays.
4
When did the Stock Market crash, causing the Great Depression?
October 29, 1929
October 29, 1928
October 28, 1929
October 28, 1928
5
What is a bank?
A place where I can find some macaroons.
A place where food is served.
an institution for receiving, keeping, and lending money
An establishment that protects you from bad guys.
6
Which of the following was a cause of the Savings & Loan Crisis of the 1980s?
high interest rates
deregulation of the industry.
bad loans
fraud
7
What does it mean to have a “gold standard?”
Seeing who can have the biggest, baddest, gold chain.
Getting rid of all silver coins and using gold only.
A system where paper and gold are equal in value.
The ability to use gold for payment.
8
What is a "greenback?"
Commodity money used by the Union during the Civil War.
Copper coins used by the Confederacy during Civil War.
Private issued currency used by Union during Civil War.
Paper currency used by the Confederacy during the Civil War.
9
When did the Stock Market crash causing the Great Recession?
September 28, 2007
September 29, 2007
September 29, 2008
September 28, 2008
10
Which of the following is NOT an example of M1 money? (one of these isn't like the other three)
currency
a mutual fund
a checking account
traveler's checks
11
What didn't the United States Treasury use the First Bank for?
to issue representative money in form of bank notes.
help government carry out its power to tax and borrow money.
to help set up wildcat banks - banks located countryside
hold money government collected in taxes.
12
Which President considered the National Bank to be his biggest enemy?
Alexander Hamilton
Andrew Jackson
George Washington
John Adams
13
What is the Federal Reserve System?
A system where the public can reserve private entities.
A system where we can reserve things, federally.
A system where federal things are reserved privately.
The nation's first true central bank-can lend of other banks
14
Why is using coins easier than using gold bars?
coins are more limited in supply
coins are more uniform.
coins are more portable.
coins are more durable.
15
What might be the main issue with using shells for money instead of coins?
divisibility
durability
portability
uniformity
16
What is an example of money as a unit of account?
check the price of a camera at stores, buy at lowest price
opening a savings account at a bank
lending a friend $25.00
purchasing a toy for $8.99
17
How were banks used during the first part of our nation's history?
They were used to help traders exchange money.
Same as today, go in, put money in, or take money out.
A place where people go, where everybody knows your name.
banks were informal businesses managed by traders
18
What did the "gold standard" do for American banking?
Provided stable currency that gave confidence to the public
Gave the national bank the ability to confiscate gold.
Took the gold from miners and turned it into coins.
Allowed banks to issue as much cash as possible
19
What did Federalist believe about banking?
That a centralized banking system was necessary.
State governments should own and run the nation's banks.
That international banking would be best.
The banking system in existence was sufficient.
20
What were the goals of the National Banking Acts of 1863 and 1864?
require banks to hold adequate gold and silver reserves
charter new banks
to try and take over the world
issue a single national currency
21
What is the purpose of the Federal Deposit Insurance Corporation (FDIC)?
to make sure the banks do not fail.
to make sure that banks charge interest on a loan.
to make sure that the government has enough gold reserve.
to make sure that customers do not lose money if banks fail.
22
What happens during a bank run?
Price of gold increases & causes people to turn $ into gold
The bank gets up and runs away.
More customers withdraw money than the bank has on hand.
The government orders a bank to close.
23
What is an example of representative money?
cattle
a fur coat
gold earrings
an IOU
24
How did the Federal Reserve System reorganize the federal banking system?
It created member banks.
It allowed for short-term loans
It created the Federal Reserve Board.
It allowed for the creation of the Federal Reserve Notes.
25
Which of the following is an example of the barter system?
Instead of paying rent, you clean the house for the owner.
Instead of paying cash for a computer, you use a credit card
Instead of using Pesos in Mexico, you pay with American cash
Instead of paying the full amount of your car, you pay 10%.
