Question : 11) The National Bank Act of 1863, and subsequent amendments : 1373737

11) The National Bank Act of 1863, and subsequent amendments to it,

A) created a banking system of state-chartered banks.

B) established the Office of the Comptroller of the Currency.

C) broadened the regulatory powers of the Federal Reserve.

D) created insurance on deposit accounts.

12) Which regulatory body charters national banks?

A) The Federal Reserve

B) The FDIC

C) The Comptroller of the Currency

D) The U.S. Treasury

13) The regulatory system that has evolved in the United States whereby banks are regulated at the state level, the national level, or both, is known as a

A) bilateral regulatory system.

B) tiered regulatory system.

C) two-tiered regulatory system.

D) dual banking system.

14) Today the United States has a dual banking system in which banks supervised by the ________ and by the ________ operate side by side.

A) federal government; municipalities

B) state governments; municipalities

C) federal government; states

D) municipalities; states

15) The U.S. banking system is considered to be a dual system because

A) banks offer both checking and savings accounts.

B) it actually includes both banks and thrift institutions.

C) it is regulated by both state and federal governments.

D) it was established before the Civil War, requiring separate regulatory bodies for the North and South.

16) The Federal Reserve Act of 1913 required that

A) state banks be subject to the same regulations as national banks.

B) national banks establish branches in the cities containing Federal Reserve banks.

C) national banks join the Federal Reserve System.

D) state banks could not join the Federal Reserve System.

17) The Federal Reserve Act required all ________ banks to become members of the Federal Reserve System, while ________ banks could choose to become members of the system.

A) state; national

B) state; municipal

C) national; state

D) national; municipal

18) Probably the most significant factor explaining the drastic drop in the number of bank failures since the Great Depression has been

A) the creation of the FDIC.

B) rapid economic growth since 1941.

C) the employment of new procedures by the Federal Reserve.

D) better bank management.

19) With the creation of the Federal Deposit Insurance Corporation, member banks of the Federal Reserve System ________ to purchase FDIC insurance for their depositors, while non-member commercial banks ________ to buy deposit insurance.

A) could choose; were required

B) could choose; were given the option

C) were required, could choose

D) were required; were required

20) With the creation of the Federal Deposit Insurance Corporation,

A) member banks of the Federal Reserve System were given the option to purchase FDIC insurance for their depositors, while non-member commercial banks were required to buy deposit insurance.

B) member banks of the Federal Reserve System were required to purchase FDIC insurance for their depositors, while non-member commercial banks could choose to buy deposit insurance.

C) both member and non-member banks of the Federal Reserve System were required to purchase FDIC insurance for their depositors.

D) both member and non-member banks of the Federal Reserve System could choose, but were not required, to purchase FDIC insurance for their depositors.