Final answer:
Option (B), The Progressives created the Federal Reserve System to reform the banking system and regulate the economy, which was established by the Federal Reserve Act of 1913 during President Woodrow Wilson's administration.
Step-by-step explanation:
Progressives created the Federal Reserve System because they wanted to reform the banking system and regulatether economy. During the Progressive Era, President Woodrow Wilson signed the Federal Reserve Act of 1913, establishing a decentralized private banking system overseen by the federal government. This act addressed issues of credit availability and the money supply, ensuring they kept pace with the economy. Through the Federal Reserve Act, twelve district banks were created throughout the nation, which, in conjunction with the Federal Reserve Board, had the authority to issue new paper currency in emergency situations and control monetary policies, such as interest rates.
By 1923, the Federal Reserve System encompassed approximately 70% of the nation's banking resources and continues to be a central feature of the United States' financial infrastructure. The creation of the Federal Reserve was a significant achievement of Wilson's administration, representing a move toward federal regulation and stability in the banking sector. It made strides against the control that private banks, particularly those owned by powerful families like the Morgans and Rockefellers, had previously held over financial policies.