FI 412 CHAPTER 9
Study online at https://quizlet.com/_hyck2w
1. 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
d. both A and B: a central bank was needed to prevent future financial panics
2. The unusual structure of the Federal Reserve System is perhaps best ex-
plained 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: only A and B
3. The many regional Federal Reserve banks resulted from a compromise be-
tween parties favoring:
a. the establishment of a central bank and those opposed to its establishment
b. a private central bank and those favoring a government institution
c. the establishment of the Board of Governors in Washington D.C. and those
preferring its establishment in NYC
d. none of the above: a private central bank and those favoring a government institution
4. 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: only A and B
5. Which of the following is not an entity of the Federal Reserve System?
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, FI 412 CHAPTER 9
Study online at https://quizlet.com/_hyck2w
a. Federal Reserve Banks
b. the FDIC
c. the Board of Governors
d. the Federal Advisory Council
e. Member commercial banks: the FDIC
6. Which Federal Reserve Bank president always has a vote in the Federal Open
Market Committee?
a. Philadelphia
b. New York
c. Boston
d. San Francisco: New York
7. Each Fed bank president attends FOMC meetings; although only ____ Fed
bank presidents vote on policy, all ____ provide input.
a. three; ten
b. five; ten
c. three; twelve
d. five; twelve: five; twelve
8. The three largest Federal Reserve banks in terms of assets are those of New
York, Chicago, and San Francisco - combined they hold more than ____ of the
assets (discount loans, securities, and other holdings) of the Federal Reserve
System.
a. 35%
b. 40%
c. 45%
d. 50%: 50%
9. All ____ are required to be members of the Fed.
a. state-chartered banks
b. nationally chartered banks
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Study online at https://quizlet.com/_hyck2w
1. 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
d. both A and B: a central bank was needed to prevent future financial panics
2. The unusual structure of the Federal Reserve System is perhaps best ex-
plained 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: only A and B
3. The many regional Federal Reserve banks resulted from a compromise be-
tween parties favoring:
a. the establishment of a central bank and those opposed to its establishment
b. a private central bank and those favoring a government institution
c. the establishment of the Board of Governors in Washington D.C. and those
preferring its establishment in NYC
d. none of the above: a private central bank and those favoring a government institution
4. 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: only A and B
5. Which of the following is not an entity of the Federal Reserve System?
1/5
, FI 412 CHAPTER 9
Study online at https://quizlet.com/_hyck2w
a. Federal Reserve Banks
b. the FDIC
c. the Board of Governors
d. the Federal Advisory Council
e. Member commercial banks: the FDIC
6. Which Federal Reserve Bank president always has a vote in the Federal Open
Market Committee?
a. Philadelphia
b. New York
c. Boston
d. San Francisco: New York
7. Each Fed bank president attends FOMC meetings; although only ____ Fed
bank presidents vote on policy, all ____ provide input.
a. three; ten
b. five; ten
c. three; twelve
d. five; twelve: five; twelve
8. The three largest Federal Reserve banks in terms of assets are those of New
York, Chicago, and San Francisco - combined they hold more than ____ of the
assets (discount loans, securities, and other holdings) of the Federal Reserve
System.
a. 35%
b. 40%
c. 45%
d. 50%: 50%
9. All ____ are required to be members of the Fed.
a. state-chartered banks
b. nationally chartered banks
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