1) The belief that bank failures were regularly caused by fraud or the lack of sufficient bank capital explains, in part, the passage of
A) the National Bank Charter Amendments of 1918.
B) the Garn St. Germain Act of 1982.
C) the National Bank Act of 1863.
D) Federal Reserve Act of 1913.
2) Before 1863,
A) federally chartered banks had regulatory advantages not granted to state chartered banks.
B) the number of federally chartered banks grew at a much faster rate than at any other time since the end of the Civil War.
C) banks acquired funds by issuing bank notes.
D) banks were required to maintain 100% of their deposits as reserves.
3) Although the National Bank Act of 1863 was designed to eliminate state chartered banks by imposing a prohibitive tax on banknotes, these banks have been able to stay in business by
A) issuing credit cards.
B) ignoring the regulations.
C) acquiring funds through deposits.
D) branching into other states.