The Federal Reserve

The Federal Reserve ensures banks and the rest of the financial system are ____ and consumers are protected.

• controlled
• monitored
• stable

• deregulated

In the Bank Panic of 1907, people trusted banks so why did they rush to withdraw money during this year?

• Banks offered high interest rates
• People wanted to invest in the stock market
• The government ordered them to withdraw money
• Rumors and fear

Was the Bank Panic of 1907 the first panic America had seen?

• YES

• NO

During the Panic of 1907, the U.S. Treasury made loans to New York banks that were threatened by the bank runs caused by the panic.

• TRUE

• FALSE

A banker in New York
recognized the threat to the whole economy and to
his personal fortune, so he stepped in and made loans
to banks to save them. Who was he?

• J.P. Morgan
• Elon Musk
• Warren Buffett
• Bill Gates

Congress passed a law in 1908 that created the what?

• Central Intelligence Agency (CIA)
• Department of Homeland Security (DHS)
• National Security Agency (NSA)
• National Monetary Commission (NMC)

The commission (NMC) issued numerous reports
over several years and finally recommended a new law
that would create a system of ___ private reserve banks
spread across the country.

• 15

• 13

• 50

• 10

When Woodrow Wilson won the election, Senator Rob-
ert Owen and Representative Carter Glass crafted a bill
creating the ________.

• Department of Homeland Security
• Central Intelligence Agency
• U.S. Central Bank

• National Parks Service

The Glass–Owen bill came to be
known as the ____ ____ ____, and President Wilson signed it into law on Dec. 23, 1913.

• Banking Regulation Act
• Federal Reserve Act
• Monetary Policy Act
• National Banking Act

Located in Washington state, the Board of Governors is
a government agency that oversees the Federal Reserve
System.

• TRUE

• FALSE