34. What banks must join the Federal Reserve System? Answers A. all nationally chartered banks B. all state-charted banks C. all banks of any kind D. Membership is voluntary. Question35. Why did Congress change the structure of the Fed in 1935? Answers A. to decentralize the banking system B. to encourage regional banks to work together consistently C. to prevent a President from appointing all Fed Governors D. to respond to banking problems caused by the Panic of 1907 Question36. What is the function of a bank examiner? Answers A. to make sure banks are obeying laws and regulations B. to respond to banks about their daily reports to the Fed C. to carry on day-to-day functions within the bank D. to oversee decisions about major loans by each bank Question37. Which is the Federal Reserve's biggest customer? Answers A. its member banks B. individuals and small businesses C. the federal government D. its twelve district banks Question38. Which of the following activities creates money? Answers A. putting money into a safe B. depositing money into a demand deposit account C. paying off a loan to a friend D. withdrawing money from a demand deposit account