The belief that bank failures were regularly caused by fraud or the lack of sufficient bank capital explains,in part,the passage of
A)the National Bank Charter Amendments of 1918.
B)the Garn-St. Germain Act of 1982.
C)the National Bank Act of 1863.
D)Federal Reserve Act of 1913.

Question

Quizplus · Accepted Answer

The National Bank Act of 1863 was passed in response to concerns about the stability of the banking system, particularly the high number of bank failures during this time. The act required banks to hold a minimum amount of capital and created a system of national banks that were supervised and regulated by the federal government. The belief that bank failures were caused by fraud or insufficient capital was a major factor that led to the passage of this act.

The Belief That Bank Failures Were Regularly Caused by Fraud