The Banking Act of 1935 Has Been Called the "Single

question 25

Multiple Choice

The Banking Act of 1935 has been called the "single most important piece of banking legislation since the original Federal Reserve Act" because the act

• A) guaranteed the solvency of member banks.
• B) gave the Fed authority to take a leadership role in setting monetary policy.
• C) made the Fed subservient to the Treasury, thus ensuring control of its power.
• D) made the Fed a "reactive" agency, thus encouraging more sensitivity to political pressures of the times.
• E) committed the U.S. government to continue backing its currency with gold.

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Definitions:

Implicit Punishments

Penalties for undesirable behavior that are not directly expressed or are implied, affecting behavior modification subtly.

Defense Mechanism

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.

Psychoanalysis

A therapeutic approach and theory of personality development that focuses on unconscious motives and conflicts, developed by Sigmund Freud.

Repression

A defense mechanism proposed by Freud in which unpleasant thoughts, feelings, or desires are excluded from conscious awareness.