American Economy

The creation of the first Bank of the United States was born out of significant needs connected to which major historical moment?

The American Revolution

The creation of the second Bank of the United States was born out of significant needs connected to which major historical moment?

The War of 1812

The creation of the Federal Reserve was born out of significant needs connected to which major historical moment?

The Panic of 1907

President Andrew Jackson's decision to veto the Second Bank of the United States, amongst other political and financial decisions, brougth about the

Panic of 1837

What is the central bank of the United States today?

The Federal Reserve System

Which American politicians did not oppose the idea of a national bank?

Alexander Hamilton

Which was not one of the benefits of establishing a national bank according to Alexander Hamilton?

Being able to help citizens manage their personal finances

Which was not one of the negatives of establishing a national bank according to Thomas Jefferson?

Would destabilize various American currencies at the earliest stages of the countries economic growth.

What does it mean for a power to be "enumerated"?

A power that is specifically/explicitly granted to the U.S. federal government by the Constitution, specifically in Article 1, Section 8.

What does it mean for a power to be "necessary and proper"?

Although it may not be “enumerated” a power is “necessary and proper” when it is “absolutely essential” for Congress to execute its constitutionally enumerated powers.

What was one major outcome of the Panic of 1907?

The movement toward monetary reform and the eventual creation of the Federal Reserve System.

Why were trust companies especially vulnerable during the Panic of 1907?

They held a much lower percentage of cash reserves compared to national banks but still approved lots of risky, no collateral loans.

Which similarity is shown between the Panic of 1907 and the financial crisis of 2007-2009?

Both crises originated outside the central banking system, among institutions like trusts and shadow banks.

What event prompted Congress to pass the Aldrich-Vreeland Act in 1908, and what were its main provisions?

A banking panic in 1907 and the need for emergency currency and monetary reform.

What were the key differences between the two major plans for banking reform: the Aldrich Plan and the Glass-Willis proposal?

Aldrich proposed a single central body dominated by bankers, while Glass favored multiple autonomous regional banks.

How did President Woodrow Wilson influence the structure and control of the Federal Reserve System?

He pushed for a central board made up of presidential appointees to ensure government oversight.

What compromises were made in the final version of the Federal Reserve Act before it became law?

The number of reserve banks was set between 8 and 12, and board members had staggered 10-year terms.

Which president is given the most credit/recognition for helping lead the United States out of the Great Depression?

Franklin Delano Roosevelt.

Franklin D. Roosevelt's massive plan to get Americans back to work and to save the country from the Great Depression was known as the

The New Deal.

Which of FDR's New Deal programs employed young men in environmental projects like reforestation, park maintenance, and soil conservation?

The Civilian Conservation Corps.

Which of FDR's New Deal programs established the minimum wage, maximum hours in a work week, and banned child labor?

The Fair labor Standards Act.

Which of FDR's New Deal programs regulated radio, telephone, and later television communications?

The Federal Communications Commission.

Which of FDR's New Deal programs provided millions of jobs in construction, arts, theater, and writing; built roads, schools, and public buildings?

The Works Progress Administration.