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98 Cards in this Set
- Front
- Back
Money is a ________.
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medium of exchange
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What is currency?
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All media of exchange circulating in a country (OR ALL OF THE ABOVE)
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What is dividing the term currency between coins called?
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Metallic Currency
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As with many financial concepts, the idea of currency has________.
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Changed
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What is Government Currency?
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Money printed by a government
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What is paper currency?
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Paper money or credit instruments
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What is bank currency?
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Notes issued against their reserves
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What are the dates for World War I?
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1914-1918
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During the Revolutionary war, the Continental Congress issued ________ money to buy desperately needed supplies.
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Paper
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Who was George Washington's Secretary of Treasury?
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Alexander Hamilton
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Who became president in 1828?
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Andrew Jackson
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The _____ federal and state banking system still survives today.
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Dual
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In the alf century before the Federal Reserve Act of 1913, America transformed itslef into a(n) ______ powerhouse.
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Industrial
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What is the title of this chapter?
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Development of U.S. Banking
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The Great Depression began in ______.
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1929
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FDIC does NOT stand for Federal Deposit Insurance Corporation
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FALSE
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Banking is a business
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TRUE
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Banks changed in the 1970s and 1980s in part because of the pressure of inflation.
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TRUE
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Coins were NOT the most common medium of exchange
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FALSE
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World War I did NOT start in 1914
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FALSE
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There was always some form of paper money in the colonies, too.
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TRUE
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Nicholas Biddle was alive in 1816
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TRUE
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Currency is NOT all media of exchange circulating in a country.
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FALSE
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The bank's charter did NOT expire in 1811
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FALSE
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Hamilton also urged the creation of a Bank of the United States
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TRUE
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As the chief depository of the U.S. government, the bank gained power
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TRUE
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Over Jefferson's objections, the bank was NOT chartered in 1791
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FALSE
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The Great Depression was the worst and longest economic crisis in the history of Western industrialized nations.
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TRUE
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When many people try to withdraw their money at once it is called
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a bank run
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FSLIC stands for
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Federal Savings and Loan Insurance Corporation
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What year was the Mint Act enacted?
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1792
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What did the Mint Act do?`
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Authorized money to be minted to be in circulation
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What was established in 1913?
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The Federal Reserve Act
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When was the second bank of America charted?
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1816
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What year was the National Banking Act enacted?
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1864
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The Federal Reserve Act was enacted in what year?
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1913
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What happened on March 6, 1933?
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Bank Holiday
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Runaway inflation is?
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Value of money doesn't match the price of goods
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What is one way to combat inflation?
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Tighten money supply and allow interest rates to rise.
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What decade sustained the longest period of growth?
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1990s
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What country did the currency real originate from?
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Spain
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What was the problem with money before World War I?
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The governmeny did not issue paper money
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Which is (are) a form of currency?
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ALL OF THE ABOVE (checks, bonds, coins)
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Has the Fderal Reserve Act changed since 1913?
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Yes
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When did the U.S. governmeny begin to issue paper currency?
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1861
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What are the different classifications of paper currency?
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government currency, bank currency, and deposit currency
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When was the Federal Reserve Act and what did it do?
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1913 and it established the basic banking sustem in use today
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Which type of currency wasn't in use during the Colonial period
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yen
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The first U.S. Bank was chartered in
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1791
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Why did the first two U.S. Banks fail?
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they were not supported enough
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What kind(s) of banks were in existence before 1864?
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state banks and private banks
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A spanish dollar is a peso
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FALSE
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There are two main types of currency
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TRUE
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Bonds, checks, and all types of loan papers are credit instruments
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FALSE
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The National Currency Act of 1863 was rewritten as the National Banking Act of 1864
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TRUE
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Colonists exculsively used currency made on American soil
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FALSE
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The Civil War brought monetary isses to a head
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TRUE
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The first bank of the United States was an institution of government
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FALSE
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Banking in the early United States had an experimental quality
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TRUE
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State Banks were friendly with the U.S. Bank
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FALSE
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Without a national banking system, state banks grew in number and influence
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TRUE
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During the Great Depression, many stocks were brought with margarine.
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FALSE
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The FSLIC is the same as the FDIC
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FALSE
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Classify currency: which one is not right? metallic currency, government currency, bank currency, deposit currency, shifting currency
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shifting currency
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True or false: Before World War one (1914-1918), many countries had governments that did not issue paper money
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TRUE
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True or False: In the early days, some settlers used shells and nails to trade for what they needed, making them a kind of coinage
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TRUE
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True or False: Other forms of currency in earlier times were pillows, mud, and banking powder
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FALSE
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Some_________type coins were minted on American soil as early as the _____, but few colonists trusted them much.
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British, 1650
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Althou colonies did use the English pounds and shillings, a Spanish dollaar called the ______ was most popular.
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Real
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During the revolutionary war the continental congres issued paper money to buy desperately needed_____.
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Supplies
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True or False: The many types of currency oftem caused problems during the crisis of the civil war, people becamse so concerned of the value of money that they often made/issued their own money
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TRUE
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Which came first: coin or paper money?
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Coin
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True or False: In many ways the United States of America was an experiment
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TRUE
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_____ also urged the creation of a ________ of the United States.
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Hamilton, bank
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_____, who believed creating such an institution gave too much power to too few people, fiercely opposed him in this idea.
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Thomas Jefferson
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After a slow start, the bank began to do well under its president, _________
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Nicholas Biddle
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The National ______ Act of 1864 was enacted to stablize the _____ system.
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Banking, banking
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True or False: Reserve liquidity are ways to convent the national government redialy to cash
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FALSE
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True or False: Many Stocks were bought on margin, or for a fraction of their price, and then resold at a profit, without the full purchase price of the stock ever having been paid.
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TRUE
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True or False: Inflation is the act of blowing a balloon.
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FALSE
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True or False: The many types of currency oftem caused problems during the crisis of the civil war, people becamse so concerned of the value of money that they often made/issued their own money
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TRUE
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When the economy as a whole is not doing very well it is called
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stagflation
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Conducting bank examinations is the _________ of a bank's financial condition its management and its compliance with banking policies is a key Federal Reserve task.
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reviewing
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True or False: The discount rate is the rate of interest that the Federal Reserve charges banks for short term loans
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TRUE
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Checks are a form of currency called?
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Deposit Currency
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Before, what was the most common medium of exchange?
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Coins
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What did the National Banking Act of 1864 do?
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Stabilized the banking system
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What did the National Bank Act establish?
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A national currency
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Ways to convert the reserves readily to cash is
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Reserve liquidity
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Congress formed a bipartisan group after what
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Severe economic pain
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How long did the great depression last
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10 years
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FDIC stands for
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Federal Deposit Insurance CORPORATION
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A collective rise in money supply and income is...
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inflation
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During the Revolutionary War, the government issued paper money to buy needed supplies
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FALSE
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The first bank of the U.S. was not an institution of government
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TRUE
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The Civil War did not bring monetary issues to a head
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FALSE
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The Federal Reserve plays a key role in the economy
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TRUE
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Margin is Not a fraction of a price
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FALSE
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