US Banking System (B2)

State banks had different currencies and policies in the early years of the United States.

• True

• False

How did Alexander Hamilton feel about a national, central US bank?

• He supported it because he thought it would help create a strong government

• He supported it because he thought it would make him a lot of money.

• He opposed it because it would give too much power to too few people.

• He opposed it because he believed states should each have their own banks.

How did Thomas Jefferson feel about a national, central US bank?

• He supported it because he thought it would help create a strong government

• He supported it because he thought it would make him a lot of money.

• He opposed it because it would give too much power to too few people.

• He opposed it because he believed states should each have their own banks.

What does it mean when the government bails out a bank?

• The government buys the bank and becomes the owner

• The government forces the bank to close

• The government loans money to the bank

• The government stops taxing the bank

Money that is produced without consent of the government

• functional money

• compulsory money

• invalid money

• counterfeit money

How long was the charter on the First Bank of the United States?

• 5 years

• 10 years

• 20 years

• 30 years

Which law created the FDIC insurance program?

• Glass-Stegall Act

• Federal Reserve Act

• National Banking Act

• Deposit Insurance Act

When did deposits in US banks become insured against bank failures?

• 1792

• 1864

• 1913

• 1933

Why might a county change the design of their currency?

• to commemorate a significant event

• for additional security reasons

• to honor a person

• All answers are correct.

Why did state banks eventually stop issuing their own currency?

• It became illegal

• State bank notes were taxed at a high rate

• State bank notes were very profitable

• The Federal government bought all state banks