When the Federal Reserve Was Unable to Stem the Bank

question 17

Multiple Choice

When the Federal Reserve was unable to stem the bank panics of the 1930s, Congress responded by:

• A) taking over the lender of last resort function and assigning this function to the U.S. Treasury.
• B) ordering the printing of tens of billions of dollars of additional currency.
• C) creating the FDIC and offering deposit insurance.
• D) declaring a bank holiday and closing banks for 30 days.

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Definitions:

Equivalent Unit

A concept in cost accounting used to allocate costs to partially completed units of product, treating them as an equivalent of a proportionate number of fully completed units.

Direct Materials

Raw materials directly used in the production of a product, easily traceable to the finished product.

Weighted Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items in inventory.

Equivalent Units

A concept in process costing that converts partially completed units into a number of fully completed units for the purposes of accounting.