Question

According to the lecture, what was a major problem faced by banks in the West before the Federal Reserve System was established? How did the system help solve this problem?

Answer 1

Prior to the creation of the Federal Reserve System, the West experienced financial crises. This resulted in the creation of the Federal Reserve Act. The Federal Reserve System was established to address these banking concerns while also promoting a stable banking system and a balanced economy.

Step-by-step explanation:

Answer 2

Answer: Before the establishment of the Federal Reserve System, the West was faced with financial crises. ... This led to the set up of the Federal Reserve Act. The Federal Reserve System was created to tackle these banking issues and also to make possible fostering a sound banking system and healthy economy.