Board of Governors

1. ________ measures that portion of the money supply most easily used as a medium of exchange.

M1

M2

M3

M4

2. Currency backed by government bonds is ________.

a gold certificate

a national bank

a national currency

a government currency

3. The National Banking System was created after World War II.

True

False

4. Who issued the bank holiday?

President Roosevelt

President Wilson

President Kennedy

President Obama

5. What was created as preventative measures due to bank failures in the 1930s?

FDIC

bank holiday

Federal Reserve notes

There were no preventative measures taken after the bank failures.

6. The government owns the nation’s central bank.

True

False

7. In a _________, banks are required to keep only a portion of their total deposits in the form of legal reserves.

excess reserve

fractional reserve system

bank run

bank holiday

8. The ____________ advises the Board of Governors in the Fed.

president of the U.S.

U.S. Treasury secretary

Advisory Committee

None of the above

9. How many members are on the Board of Governors in the Fed?

4

3

7

10

10. The Federal Reserve is a corporation that is not a part of any branch in the government.

True

False