Question

When Congress established the Federal Reserve in​ 1913, its main responsibility was

A.to make discount loans to banks suffering from large withdrawals by depositors.B.to design tax policies.C.to control the money supply.D.to adjust interest rates.

Answer 1

The correct answer is A

Step-by-step explanation:

Federal Reserve also called as Fed, is the one central banking system and it is responsible for setting the policy on the monetary matters.

Fed has 3 functions, which are supervise the operations of the banking, conduct the monetary policy of nation and maintain and provide an efficient and effective system of payment.

When it is established in the year 1913, it primary responsibility is to make the discount loans to banks, which are suffering from the large withdrawals made by depositors.