The Federal Reserve System was established by Congress in 1914
A)as a result of a breakthrough in economic theory.
B)against significant opposition from the banking sector.
C)because of the need for a central bank.
D)as the world's first central bank.

Question

Quizplus · Accepted Answer

The Federal Reserve System was established because of the need for a central bank to regulate the nation's banking system and ensure a stable currency. The Panic of 1907 demonstrated the need for such a system.

The Federal Reserve System Was Established by Congress in 1914