The History of American Banking In this lesson
![The History of American Banking In this lesson, students will identify critical periods in The History of American Banking In this lesson, students will identify critical periods in](https://slidetodoc.com/presentation_image_h/293b9a1d0fc40f0787ab85a13a359ac8/image-1.jpg)
The History of American Banking In this lesson, students will identify critical periods in the history of American banking. Students will be able to identify and/or define the following terms: Bank Federalists Anti-Federalists Federal Reserve Bank E. Napp
![A bank is an institution for receiving, keeping, and lending money. E. Napp A bank is an institution for receiving, keeping, and lending money. E. Napp](http://slidetodoc.com/presentation_image_h/293b9a1d0fc40f0787ab85a13a359ac8/image-2.jpg)
A bank is an institution for receiving, keeping, and lending money. E. Napp
![Today, the Federal Reserve Bank oversees banking in the United States. It was not Today, the Federal Reserve Bank oversees banking in the United States. It was not](http://slidetodoc.com/presentation_image_h/293b9a1d0fc40f0787ab85a13a359ac8/image-3.jpg)
Today, the Federal Reserve Bank oversees banking in the United States. It was not always this way. E. Napp
![There was a time when banks were not regulated by the Federal government. Sometimes There was a time when banks were not regulated by the Federal government. Sometimes](http://slidetodoc.com/presentation_image_h/293b9a1d0fc40f0787ab85a13a359ac8/image-4.jpg)
There was a time when banks were not regulated by the Federal government. Sometimes bankers made poor decisions that bankrupted their banks. E. Napp
![Federalists vs. Anti-Federalists • At the founding of the nation, Federalists wanted a strong, Federalists vs. Anti-Federalists • At the founding of the nation, Federalists wanted a strong,](http://slidetodoc.com/presentation_image_h/293b9a1d0fc40f0787ab85a13a359ac8/image-5.jpg)
Federalists vs. Anti-Federalists • At the founding of the nation, Federalists wanted a strong, central bank. • Anti-Federalists did not. Anti-Federalists believed that a strong, central bank would only loan to the rich and powerful. • Federalists and Anti-Federalist just didn’t agree. E. Napp
![Federalists, like Alexander Hamilton, believed that a strong, central bank was essential for the Federalists, like Alexander Hamilton, believed that a strong, central bank was essential for the](http://slidetodoc.com/presentation_image_h/293b9a1d0fc40f0787ab85a13a359ac8/image-6.jpg)
Federalists, like Alexander Hamilton, believed that a strong, central bank was essential for the new nation. A strong, central bank could prevent abuses in banking. E. Napp
![Anti-federalists, like Patrick Henry, believed that a strong, central bank would have too much Anti-federalists, like Patrick Henry, believed that a strong, central bank would have too much](http://slidetodoc.com/presentation_image_h/293b9a1d0fc40f0787ab85a13a359ac8/image-7.jpg)
Anti-federalists, like Patrick Henry, believed that a strong, central bank would have too much power. Wasn’t the revolution about limiting the power of the government? E. Napp
![Then There Was None • Sometimes the Anti-Federalists won. • Whenever a central bank Then There Was None • Sometimes the Anti-Federalists won. • Whenever a central bank](http://slidetodoc.com/presentation_image_h/293b9a1d0fc40f0787ab85a13a359ac8/image-8.jpg)
Then There Was None • Sometimes the Anti-Federalists won. • Whenever a central bank was lacking, there was frequently chaos in banking. Banks often made too many bad loans. • When enough people defaulted or did not pay back their loans, the banks went bankrupt. E. Napp
![You see, banks make money by loaning money. However, if banks loan money to You see, banks make money by loaning money. However, if banks loan money to](http://slidetodoc.com/presentation_image_h/293b9a1d0fc40f0787ab85a13a359ac8/image-9.jpg)
You see, banks make money by loaning money. However, if banks loan money to people who cannot repay their loans, then banks lose money. E. Napp
![The Federal Reserve Bank • Eventually, it became clear that the nation needed a The Federal Reserve Bank • Eventually, it became clear that the nation needed a](http://slidetodoc.com/presentation_image_h/293b9a1d0fc40f0787ab85a13a359ac8/image-10.jpg)
The Federal Reserve Bank • Eventually, it became clear that the nation needed a strong, central bank to oversee banking in America. • A strong central bank could monitor banking in the country and make sure that banks did not make too many loans. • A strong, central bank could hold bankers to higher standards thereby protecting consumers. E. Napp
![In the case of banking, the Federalists may have been right. A central bank In the case of banking, the Federalists may have been right. A central bank](http://slidetodoc.com/presentation_image_h/293b9a1d0fc40f0787ab85a13a359ac8/image-11.jpg)
In the case of banking, the Federalists may have been right. A central bank does prevent abuses in banking. E. Napp
![The Fed • The Federal Reserve Bank is commonly referred to as the “Fed. The Fed • The Federal Reserve Bank is commonly referred to as the “Fed.](http://slidetodoc.com/presentation_image_h/293b9a1d0fc40f0787ab85a13a359ac8/image-12.jpg)
The Fed • The Federal Reserve Bank is commonly referred to as the “Fed. ” • The Federal Reserve Bank can make loans to banks, raise or lower interest rates, and require banks to hold adequate reserves. • The Fed helps banks across America. E. Napp
![The Fed monitors banking in every part of the United States. E. Napp The Fed monitors banking in every part of the United States. E. Napp](http://slidetodoc.com/presentation_image_h/293b9a1d0fc40f0787ab85a13a359ac8/image-13.jpg)
The Fed monitors banking in every part of the United States. E. Napp
![Questions for Reflection: • What is a bank? • What was the primary difference Questions for Reflection: • What is a bank? • What was the primary difference](http://slidetodoc.com/presentation_image_h/293b9a1d0fc40f0787ab85a13a359ac8/image-14.jpg)
Questions for Reflection: • What is a bank? • What was the primary difference between the Federalist party and the Anti. Federalists? • Why did chaos occur in banking when a strong, central bank did not exist in the country? • What is the Federal Reserve Bank? E. Napp
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