Final answer:
The Federal Reserve was established in 1913 and serves as the central bank of the United States, responsible for a wide range of financial and monetary functions, including conducting monetary policy and regulating the banking system.
Step-by-step explanation:
The correct statement about the Federal Reserve is that it was created in 1913. The Federal Reserve, often abbreviated as "the Fed," is the central bank of the United States, not Canada, and is involved in a wide array of activities beyond just controlling the money supply. The Fed's responsibilities include regulating financial institutions, conducting monetary policy, providing services to the government, maintaining the payment system, enforcing consumer protection laws, supervising member banks, bank holding companies, and international operations of U.S. commercial banks. It also maintains the country's currency, clears checks, and oversees truth-in-lending laws. While the Fed is a key part of the nation's financial system, it is not strictly part of the executive branch of the government. It is a semi-decentralized institution, with a mix of government appointees and private-sector representation, created by the Federal Reserve Act of 1913 to act as a central bank for the U.S. government and to establish monetary policies affecting the economy.