The Federal Reserve System Was Created

question 49

Multiple Choice

The Federal Reserve System was created

• A)by the National Banking Act of 1863
• B)initially as a bank for the banking system
• C)with strong central powers and a mandate to control the money supply until it was restructured in the 1930s
• D)initially with 12 districts,which were later restructured into the 15-district system we have today
• E)with the power to regulate all banks

---

Definitions:

Degrees of Freedom

The number of independent values or quantities that can vary in a statistical calculation.

Chi-Square Critical Value

A point on the chi-square distribution that is compared to the chi-square test statistic to determine whether to reject the null hypothesis.

Level of Significance

Level of significance is a threshold in hypothesis testing, denoted as alpha, that determines the probability of rejecting the null hypothesis when it is true.

Chi-Squared Curve

A graphical representation of the chi-squared distribution, showing the probability of chi-squared values along the x-axis.