Question

How did banks/ currency change under Wilson's presidency?

A) The Federal Reserve Act of 1913 was passed, establishing the Federal Reserve System, which reformed the country's banking and currency system. It created a central bank and a network of regional Federal Reserve banks to provide stability and regulation to the banking system.

B) The Gold Standard Act of 1900 was repealed, effectively ending the gold standard in the United States and allowing for more flexible monetary policy.

C) The National Banking Act of 1863 was expanded and amended to create a more uniform system of national banks, leading to greater standardization and oversight in the banking industry.

D) The Greenback currency was reintroduced as the primary form of currency in the United States, replacing gold and silver coins.

Answer 1

The banking and currency systems in the U.S. saw transformative changes under President Wilson through the Federal Reserve Act of 1913, establishing the Federal Reserve System and leading to increased stability and federal oversight.

Step-by-step explanation:

During President Woodrow Wilson's administration, there were significant changes to the banking and currency systems in the United States.

A key piece of legislation was the Federal Reserve Act of 1913, which established the modern central banking system known as the Federal Reserve, a decentralized private banking system controlled by the federal government. This act created a network of twelve regional Federal Reserve banks, each serving its respective district. These banks could issue new paper currency in emergency situations and support member banks, leading to greater stability and federal regulation in the banking sector.

By 1923, this network encompassed approximately 70% of the nation's banking resources and is considered one of the most enduring achievements of Wilson's presidency.