Question

Also later passing legislation establishing the Federal Reserve (which provides a system for regulating the nation's banks, credit, and money supply) and the Federal Trade Commission (which investigates and prohibits unfair business practices).

a) True
b) False

Answer 1

The legislation establishing the Federal Reserve in 1913 is true and it created the nation's central bank which regulates banks, credit, and the money supply. The Federal Reserve has multiple responsibilities, including monetary policy and consumer protection, while the FTC investigates unfair business practices.

Step-by-step explanation:

The statement that legislation establishing the Federal Reserve provided a system for regulating the nation's banks, credit, and money supply is true. The Federal Reserve Act of 1913 established the Federal Reserve System as the central bank of the United States.

It has a broad set of responsibilities, which include regulating financial institutions, conducting monetary policy, and ensuring consumer protection. The Federal Reserve oversees the country's currency, clears checks, and manages the payment system among other functions. Additionally, the Federal Open Market Committee within the Fed is responsible for decisions about the growth of the money supply, with a direct impact on the economy.

Furthermore, the legislation around that time also led to the creation of the Federal Trade Commission (FTC), which plays a crucial role in investigating and prohibiting unfair business practices. These legislative actions were part of broader financial reforms aimed at providing greater stability and fairness within the American economy. The Federal Reserve System continues to play a vital role in managing the nation's monetary system and stabilizing its economy.