1. The Gold Standard Act of 1900 ended the standard known as (1 point)
fractional reserve banking.
full reserve banks.
2. Which of the following statements describes the practice of fractional reserve banking?(1 point)
The United States issues currency that can be exchanged for a set amount of gold.
The United States issues currency that cannot be exchanged for a set amount of gold.
A bank keeps all deposited funds.
A bank lends a percentage of each depositor’s funds to borrowers.
3. Which of the following is a 20th-century banking development that enables a person to transfer funds from a checkable account directly to a vendor for payment?(1 point)
4. Elijah is concerned that his bank is making bad financial decisions and fears that his $1,200 deposit will be lost if the bank collapses. As long as his bank meets the required requirements, which of the following will protect Elijah from this potential loss?(1 point)
fractional reserve banking
Federal Deposit Insurance Company
Client Loan Act
5. A significant body of legislation passed in the 20th century was aimed at reducing the risk of future economic events such as the liquidity crunch that banks experienced during the 1907 panic. Which of the following measures would increase the risk of a liquidity crisis?(1 point)
Banks are required to keep a larger percentage of depositor funds in their vaults.
Banks that need cash are offered low-interest loans from the Federal Reserve.
Banks are required to keep a lower percentage of depositor funds in their vaults.
Banks with liquidity needs are offered low-interest loans by other banks.