What was the purpose of the Federal Reserve Act?
A) to end the Great Depression, which had begun during the end of Roosevelt's last term as president
B) to nationalize the banking system so that all banks became public institutions rather than private corporations
C) to promote the gold standard in such a way that the banking system of the United States was identical to that of the Civil War
D) to require every state-chartered bank to become a member of the Federal Reserve system and regulate them closely
E) to adjust the nation's currency supply and create a national banking system to promote growth and ensure the stability of member banks

Question

Quizplus · Accepted Answer

The purpose of the Federal Reserve Act was to adjust the nation's currency supply and create a national banking system to promote growth and ensure the stability of member banks. It allowed for the creation of a central banking system that could regulate and stabilize the economy, provide emergency lending to banks, and manage the money supply through its control over interest rates and the circulation of currency.

What Was the Purpose of the Federal Reserve Act