tb_chap12 - Chapter12 12.1 1 A B C

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Chapter 12 Structure of Central Banks and the Federal Reserve System 12.1 Origins of the Federal Reserve System 1) The First Bank of the United States A) was disbanded in 1811 when its charter was not renewed. B) had its charter renewal vetoed in 1832. C) was fundamental in helping the Federal Government finance the War of 1812. D) None of the above. Answer: A Ques Status: New 2) The Second Bank of the United States A) was disbanded in 1811 when its charter was not renewed. B) had its charter renewal vetoed in 1832. C) is considered to be the primary cause of the bank panic of 1907. D) None of the above. Answer: B Ques Status: New 3) The public ʹ s fear of centralized power and distrust of moneyed interests led to the demise of the first two experiments in central banking: A) the First Bank of the United States and the Second Bank of the United States. B) the First Bank of the United States and the Central Bank of the United States. C) the First Central Bank of the United States and the Second Central Bank of the United States. D) the First Bank of North America and the Second Bank of North America. Answer: A Ques Status: Revised 4) 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. D) a central bank was needed to prevent future panics. Answer: D Ques Status: Previous Edition
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298 Mishkin · Economics of Money, Banking, and Financial Markets , Eighth Edition 5) What makes the Federal Reserve so unique compared to other central banks around the world is its A) centralized structure. B) decentralized structure. C) regulatory functions. D) monetary policy functions. Answer: B Ques Status: New 12.2 Structure of the Federal Reserve System 1) Which of the following is NOT an entity of the Federal Reserve System? A) Federal Reserve Banks B) The Comptroller of the Currency C) The Board of Governors D) The Federal Open Market Committee Answer: B Ques Status: Revised 2) Which of the following is an entity of the Federal Reserve System? A) The U.S. Treasury Secretary B) The FOMC C) The Comptroller of the Currency D) The FDIC Answer: B Ques Status: New 3) The three largest Federal Reserve banks (New York, Chicago, and San Francisco) combined hold more than ________ percent of the assets of the Federal Reserve System. A) 25 B) 33 C) 50 D) 67 Answer: C Ques Status: New
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Chapter 12 Structure of Central Banks and the Federal Reserve System 299 4) Each Federal Reserve bank has nine directors. Of these ________ are appointed by the member banks and ________ are appointed by the Board of Governors.
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This note was uploaded on 03/23/2011 for the course ECON 301 taught by Professor Hassan during the Spring '08 term at Rutgers.

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tb_chap12 - Chapter12 12.1 1 A B C

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