Question

1. Central banking generally relies on:

a. the monopolization of note issue.

b. the tendency to centralize the holding of gold.

c. government privilege.

d. All of the above.

e. None of the above.

21. What president believed that a central bank for the United States would be unconstitutional?

a. George Washington.

b. Thomas Jefferson.

c. Alexander Hamilton.

d. Abraham Lincoln.

e. Donald Trump.

23. Martin Van Buren succeeded President ___ and initiated the “Independent ___ System.

a. Jefferson; Banking

b. Hamilton; Central Banking

c. Jackson; Treasury

d. Lincoln; National Banking

e. Grant; State Sovereignty

24. President Van Buren’s proposal for the Independent Treasury System:

a. easily passed Congress in Van Buren’s first year in office.

b. passed Congress but only after a few years of debate.

c. never was passed by Congress.

d. passed Congress and was in effect until the Federal Reserve Act was passed in 1913.

e. passed the Congress and was continuously in effect until the Civil War.

38. The role of the Fed includes:

a. holding deposits from the federal government.

b. providing services to clear checks through the financial system.

c. control the nation’s money supply.

d. All of the above.

e. Only B and C of the above.

Answer 1

1. Option a is correct. Cengral bank has a monopoly to print notes. It is not government;s privilege.It has gold as an asset but the tendency to centralize the holding of gold is not anymore there as gold standard is abolished.

21.Option b is correct as he believed that Federal bank was unauthorised extension of federal power.

23. Martin Van Buren succeeded President Andrew Jackson and initiated the “Independent treasury System.

24. Option b. passed Congress but only after a few years of debate.Proposed in 1837 but was passed in 1840Whig abolished it in 1841.