Question

Why was the federal reserve created in 1913?

A. To regulate the Nationsbank

B. to train army soldiers

C. to collect property taxes

D. to draft people for the war

Answer 1

The Federal Reserve was created in 1913 to regulate the banking industry and establish a federal banking system, removing power over interest rates from private bankers and creating stability in the nation's banking system. The correct option is A.

Step-by-step explanation:

The Federal Reserve was created in 1913 to regulate the banking industry and establish a federal banking system. It was designed to remove power over interest rates from private bankers and create stability in the nation's banking system. The Federal Reserve Act created twelve privately owned regional reserve banks regulated by a presidentially appointed Federal Reserve Board. The Board, known as the Fed, regulated the interest rate at which reserve banks loaned or distributed money to other banks around the country. It also had the ability to lower or raise interest rates to encourage or discourage borrowing, depending on the economic conditions.