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Evolution of Banking and Economic Policies in 20th Century United States Quiz

#1

Which act, passed in 1913, established the Federal Reserve System in the United States?

Federal Reserve Act
Explanation

Established the Federal Reserve System

#2

What is the primary function of the Federal Deposit Insurance Corporation (FDIC)?

To insure bank deposits
Explanation

Primary function is insuring bank deposits

#3

Which organization, established in 1934, aimed to regulate the securities industry and protect investors in the United States?

Securities and Exchange Commission (SEC)
Explanation

Aimed to regulate securities industry and protect investors

#4

What is the purpose of the Federal Open Market Committee (FOMC) in the United States?

To conduct monetary policy
Explanation

Purpose is to conduct monetary policy

#5

Which event in 1929 is often considered the beginning of the Great Depression in the United States?

The stock market crash
Explanation

Beginning of Great Depression

#6

Who was the Chairman of the Federal Reserve during the 2008 financial crisis?

Ben Bernanke
Explanation

Chairman during 2008 financial crisis

#7

Which legislation, enacted in 1933, aimed to prevent another stock market crash like the one in 1929?

Glass-Steagall Act
Explanation

Aimed to prevent another stock market crash

#8

Which president signed the Banking Act of 1933, commonly known as the Glass-Steagall Act?

Franklin D. Roosevelt
Explanation

Signed the Glass-Steagall Act

#9

Who is considered the architect of the New Deal policies that shaped U.S. economic recovery during the Great Depression?

Franklin D. Roosevelt
Explanation

Architect of New Deal policies

#10

What economic theory, popular in the 1980s, emphasizes the importance of reducing government intervention in the economy?

Supply-side economics
Explanation

Emphasizes reducing government intervention

#11

Who was the economist known for advocating Keynesian economics during the mid-20th century in the United States?

John Maynard Keynes
Explanation

Advocated Keynesian economics

#12

What was the main objective of the Gramm-Leach-Bliley Act passed in 1999?

To repeal Glass-Steagall restrictions on affiliations between banks and securities firms
Explanation

Main objective was to repeal Glass-Steagall restrictions

#13

Who is often credited with developing the concept of 'too big to fail' regarding financial institutions?

Alan Greenspan
Explanation

Credited with 'too big to fail' concept

#14

Which economist is known for his advocacy of deregulation and free market principles, influencing policies in the late 20th century?

Milton Friedman
Explanation

Advocated deregulation and free market principles

#15

Which economist proposed the 'rational expectations' theory, suggesting that individuals make economic decisions based on rational predictions of the future?

Robert Lucas Jr.
Explanation

Proposed 'rational expectations' theory

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