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1) Which of the following is true of unit banking? a. It is the dominant form of

ID: 2741194 • Letter: 1

Question

1)   Which of the following is true of unit banking?
a.   It is the dominant form of banking in the United Sates.
b.   It occurs when national banks open interstate branch offices.
c.   It implies that every financial institution should maintain its account with the Federal
      Reserve.
d.   It occurs when a bank is not allowed to operate in more than one location.
e.   It refers to the monopolization of the banking industry.

2)   Which of following policies of the Congress was aimed to place the Fed above politics and maintain
       continuity in the policymaking process?
a.   The President elects the entire Board of Governors.
b.   The Federal Reserve district banks elects the Board of Governors.
c. The Congress elects a board member every five years.
d.   One board member’s term expires every second year.
e.   Only bankers are allowed to be appointed as board members.

Explanation / Answer

1)   Which of the following is true of unit banking?
c.   It implies that every financial institution should maintain its account with the Federal Reserve.

2)   Which of following policies of the Congress was aimed to place the Fed above politics and maintain
       continuity in the policymaking process?
e.   Only bankers are allowed to be appointed as board members.