Question

Which of the following conclusions can be drawn about the impact of the Federal Reserve Act of 1913 on the U.S. economy, based on the statement below? Before the passing of the Federal Reserve Act of 1913, most of America's trade was financed by European bankers. By the early 1920s, over half of America's trade was financed by American bankers, and the dollar had become the international trade currency. - excerpt from "The Fed's Formative Years" by David C. Wheelock

A.The Federal Reserve Act of 1913 changed the economy from being import-based to export-based.
B.The Federal Reserve Act of 1913 allowed the federal government to expand industry in the U.S.
C.The Federal Reserve Act of 1913 increased the amount of money banks could lend to international investors.
D.The Federal Reserve Act of 1913 paved the way for the U.S. to become an international economic superpower.

Answer 1

B

Step-by-step explanation:

ITS B

Answer 2

The correct option is B.
It can be seen from the passage given above that before the Federal Reserve Act of 1913 was enacted, American citizens do not engage in banking industry as a form of business, they depended on the European for this service. But after the law was enacted, American went into the business of banking and this lead to other events which tremendously benefitted the American economy. This shows that the Act allowed the federal government to expand industry in the country.