1. Unit 3 Part 2

2.  1913  First true central bank Can lend to other banks in times of need Oversees monetary policy  All national banks required to become “members” State banks were eligible  Banks bought shares  Public  President appoints Governors and chairperson

3.  Federal Reserve Notes became the only type of currency  Responsibilities Monetary policy Payment services Bank supervision and regulation

4.  http://www.frbatlanta.org/news/multimedia /130129_fedExplained_centralbank.cfm http://www.frbatlanta.org/news/multimedia /130129_fedExplained_centralbank.cfm  https://www.frbatlanta.org/about/fed- explained/2016/monetary-policy.aspx https://www.frbatlanta.org/about/fed- explained/2016/monetary-policy.aspx  https://www.frbatlanta.org/about/fed- explained/2015/supervision-and- regulation.aspx https://www.frbatlanta.org/about/fed- explained/2015/supervision-and- regulation.aspx  https://www.frbatlanta.org/about/fed- explained/2013/regional-banks.aspx https://www.frbatlanta.org/about/fed- explained/2013/regional-banks.aspx  https://www.frbatlanta.org/about/fed- explained/2014/payments-system.aspx https://www.frbatlanta.org/about/fed- explained/2014/payments-system.aspx

5.  Banks were overextended Over-expansion No deposit insurance for costumers  Great depression Panic Run on the bank Bank holiday - March 5, 1933 – FDR  Allowed time for Congress to pass legislation  10,000 banks closed or merged Depositors lost almost all their savings

6.  Federal Deposit Insurance Corporation  1933  Glass-Steagull Act or Banking Act of 1933 To strengthen the banking industry  Passed after GD  Insure costumer deposits in the event of a bank failure up to 100,000  Provided security  Pursues ways to protect against fraudulent banks