When the Federal Reserve System was first established,which of the following was its chief responsibility?
A) Keeping the inflation rate low and stable
B) Ensuring the stability of the banking system
C) Achieving full employment of the labor force
D) Keeping the interest rate low and stable
E) Keeping output growth high and stable.

Question

Quizplus · Accepted Answer

The chief responsibility of the Federal Reserve System when it was first established in 1913 was to ensure the stability of the banking system, particularly after a series of banking panics had occurred in the late 19th and early 20th centuries. The Federal Reserve was created to be a lender of last resort, providing emergency loans to banks and helping to prevent future panics. While its responsibilities have expanded over time, ensuring the stability of the banking system remains a core function of the Federal Reserve.

When the Federal Reserve System Was First Established,which of the Following