Honors NSL Government Quiz Review
Monetary policy
The actions the Federal Reserve takes to influence the level of real GDP and the rate of inflation in the economy.
Federal Advisory Council (FAC)
The research arm of the Federal Reserve.
What was the resulting Federal Reserve System a group of?
The resulting Federal Reserve System, now often referred to simply as "the Fed", was a group of twelve regional independent banks.
Board of Govenors
The seven-member board that oversees the Federal Reserve System.
What were the accomplishments of the first Bank of the United States?
The first Bank of the United States issued a single currency. It also reviewed banking practices and helped the federal government carry out its duties and powers.
What did many people fear most about a central bank?
Many people feared that a central bank placed too much power in the hands of the federal government.
What happened after the Second Bank was toppled in 1836 when its charter expired?
A period of confusion followed. States chartered some banks, while the federal government chartered and regulated others. Reserve requirements-the amount of reserves that banks are required to keep on hand-were difficult to enforce, and the nation experienced a series of serious bank runs.
How long has the issue of a central bank been debated hotly?
As you read in Chapter 10, the issue of a central bank has been debated hotly since 1790, when Federalists lined up in favor of a central bank.
What is the banking system a compromise between?
As you will read below, the banking system is a compromise between supporters and opponents of a central bank.
Who recommended that Congress pass the Federal Reserve Act?
Based on the NMC's recommendations, Congress passed the Federal Reserve Act in 1913.
How does business regulation protect the public?
Businss regulation protects the public by setting standards for industry.
Who is responsible for the nation's fiscal policy?
Congress and the President are responsible for the nation's fiscal policy.
What did Congress create in 1908 to propose solutions to the nation's banking problems?
Congress created the National Monetary Commission (NMC) in 1908 to propose solutions to the nation's banking problems.
When did Congress establish the Second Bank of the United States?
Congress established the Second Bank of the United States in 1816 to restore order in the monetary system.
Federal Open Market Committee (FOMC)
Federal Reserve committee that makes key decisions about interest rates and the growth of the United States money supply.
What two issues did the nation's banking system need to address?
FirstConsumers and businesses needed access to increased sources of funds to encourage business expansion. Second, banks needed a source of emergency cash to prevent depositor panics that resulted in bank runs.
How long did the first Bank last before Congress refused to extend its charter?
Partly because of the continued debate over state versus federal powers, however, the first Bank lasted only until 1811 when Congress refused to extend its charter.
When did political opposition eventually topple the Second Bank?
Political opposition toppled the Second Bank in 1836 when its charter expired.
How has the American banking system been developed?
The American banking system has developed slowly and without any central plan.
Who is the Federal Reserve System headed by?
The Federal Reserve Board of Governors
Is the Federal Reserve System controlled by the government?
The Federal Reserve System is the nation's central bank, but it is not controlled by the government.
What is the nation's central bank?
The Federal Reserve System is the nation's central bank.
Who owns the Federal Reserve?
The Federal Reserve is owned by individual member banks.
Who is responsible for the nation's monetary policy?
The Federal Reserve is responsible for the nation's monetary policy.
What convinced Congress to act on the period of confusion where states chartered some banks?
The Panic of 1907 convinced Congress to act on the period of confusion where states chartered some banks.
Federal Reserve Districts
The twelve banking districts created by the Federal Reserve Act.
Why did Congress create the Federal Reserve System in 1913?
To stabilize the nation's banking system, Congress created the Federal Reserve System in 1913.