Question

How did the Federal Reserve Act reorganize the banking system?

OIt put the president in charge of the banking system.
O It created a central bank, which oversaw the activities of 12 regional banks.
O It decentralized the banking system.
O It created independent banks throughout the country.

Answer 1

The Federal Reserve Act reorganized the banking system by creating a central bank called the Federal Reserve, which consisted of twelve regional reserve banks and a Federal Reserve Board appointed by the president. This central bank regulated interest rates and provided stability to the banking system.

Step-by-step explanation:

The Federal Reserve Act, signed into law in 1913 by President Wilson, reorganized the banking system in the United States. It created a central bank known as the Federal Reserve, which consisted of twelve privately owned regional reserve banks and a Federal Reserve Board appointed by the president. These regional banks were regulated by the Federal Reserve Board and were responsible for regulating interest rates and providing stability to the banking system.