Question

In 2007, the British bank ________ experienced the first bank run to occur in the United

Kingdom in over 100 years.

A) the First National Bank of Keystone

B) Indymac

C) Northern Rock

D) Barclays Bank, PLC

The largest bank failure rate occurred during the:

A) early 1930s.

B) late 1970s.

C) early 1890s.

D) mid-2000s.

Immediately after being sworn in as president in 1933, ________ declared ________.

A) Herbert Hoover; the end of the Great Depression.

B) Franklin D. Roosevelt; a bank holiday.

C) Alexander Hamilton; the establishment of the First Bank of the United States.

D) Harry S. Truman; higher taxes on bank profits.

The name of the government agency that insures commercial bank deposits is the:

A) Federal Savings and Loan Insurance Corporation.

B) Federal Deposit Insurance Corporation.

C) Federal Reserve System.

D) Office of the Comptroller.

Answer 1

Question 1

United Kingdom has faced the banking crisis in 1970s.

However, during that banking crisis, there was no bank run.

The bank run occurred on British bank Northern Rock in 2007.

This was the first bank run to occur in the United Kingdom in over 100 years.

Hence, the correct answer is the option (C).

Question 2

Bank failure has impacted the economies around the world at various time period.

However, the rate of bank failure was highest during the Great Depression.

The Great Depression occurred during 1930s.

So,

The largest bank failure rate occurred during the early 1930s.

Hence, the correct answer is the option (A).

Question 3

In 1933, Franklin D. Roosevelt sworn in as the persident of the United States.

He has sworn in during the Great Depression.

During that time bank failures was happening at rapid rate.

So, on inaugration of Presidency, he declared the bank holiday.

Hence, the correct answer is the option (B).

Question 4

In the United States, deposits upto $250,000 is insured.

This emans in case of bank failure, bank deposits up to $250,000 is reimbursed by the government.

The agency that insurer commercial bank deposits is the Federal Deposit Insurance Corporation.

Hence, the correct answer is the option (B).