Title: QUIZ: The Great Depression -- The Federal Reserve and You
Course: Kelly's Copy & Export Course > Section: The Great Depression -- The Federal Reserve and You

Q: One of the ways the Federal Reserve failed to respond appropriately to the Great Depression was that it
- loosened regulations on banks.
- did not provide enough liquidity to banks.
- sold too many treasury securities to banks.
- allowed banks to lend to high-risk borrowers.
A: did not provide enough liquidity to banks.

Q: During the Great Depression, the Federal Reserve allowed ____________, which proved to have a substantial, negative impact on the economy.
- prices to fall
- savings to increase
- unemployment to fall
- interest rates to increase
A: prices to fall

Q: Deflation is a period
- with very high unemployment and interest rates.
- with very low unemployment and interest rates.
- where prices fall sharply.
- where prices rise sharply.
A: where prices fall sharply.

Q: During the Great Depression, about a ____________ of all banks failed or collapsed and went bankrupt.
- third
- fourth
- fifth
- sixth
A: third

Q: The Banking Act of 1933, known as the Glass-Steagall Act, protected bank deposits by creating
- the Office of the Comptroller of the Currency.
- the Federal Deposit Insurance Corporation.
- the Office of Monetary Affairs.
- the Federal Reserve System.
A: the Federal Deposit Insurance Corporation.

Q: The Banking Act of 1933 established the Federal Open Market Committee (FOMC), which is tasked with
- ensuring banks minimize risks.
- overseeing banking regulations.
- setting the direction of monetary policy.
- insuring deposits up to a maximum amount.
A: setting the direction of monetary policy.