1. Chapter 10 : Lesson 2 The Development of Modern Banking

2. Essential Question: Why was the national banking system developed?

3. State Bank: a bank that receives its charter from the state in which it operates

4. Legal Tender: currency that must be accepted for payment by decree of government

6. National Bank: a commercial bank chartered by the national Banking System

7. Gold Certificates : a paper currency backed by gold; issued in 1863 and popular until recalled in 1934

10. Silver Certificates : a paper currency backed by silver; and redeemable for silver from 1878 to 1968

11. Gold Standard : a system in which the basic unit of currency is equivalent to, and can be exchanged for, a specific amount of gold

13. Bank Run : sudden rush by depositors to withdraw all funds; generally in anticipation of a bank failure or closure

14. Bank Holiday : brief period during which all banks are closed to prevent bank runs

15. Federal Deposit Insurance Corporation (FCIC) : The United States government institution that provides deposit insurance on depositor’s account

17. Review Question:
Chapter 10 : Lesson 2
Read pages and answer Review Questions on page 288. Hand in Google Class Room.