Exam 2: Development of the Us Banking System

Explain how the successful economy of the 1920s helped cause the Great Depression of the 1930s.​

Before World War I in the United States, the term ____________________ currency meant the money the government printed, and nothing else.

Briefly describe some of the causes of the recent mortgage crisis.

What is deposit currency?

In the absence of a national banking system, state banks grew in number and influence in the early years of the United States.

During the 1970s the inflation rate was about ____________________ per year.

The largest denomination of paper currency printed in the United States today is the

There was no form of paper currency in colonial America.

Explain why Thomas Jefferson was opposed to the creation of a central bank.

The National Banking Act of 1864 founded an adaptable, flexible system of central banking for the United States.

Why did the first Bank of the United States fail?

To combat inflation, the government may institute any of the following policies EXCEPT

During the mortgage and credit crises, the government did not intervene to rescue financial institutions on the brink of failure.

The National Currency Act of 1863 did all of the following EXCEPT

What was the most common medium of exchange in colonial America?

The National Banking Act of 1864 spelled the end of state banking systems in the United States.

____________________ quarters are coins that highlight special features in each state.

A decline in total production lasting a minimum of two consecutive quarters defines

Any bank that is part of the Federal Reserve System is called a(n) ____________________ bank.

The second Bank of the United States