When Congress established the Federal Reserve in 1913, the Fed's main purpose was to:
A)make federal funds loans. conduct open-
B)market operations. bankroll the
C)government in World War I. act as a
D)lender of last resort.

Question

Quizplus · Accepted Answer

The main purpose of establishing the Federal Reserve in 1913 was to act as a lender of the last resort. This means that the Fed would provide funds to banks during times of financial distress to prevent bank failures and bank runs. The other options were not the main purpose of the Fed's establishment in 1913.

When Congress Established the Federal Reserve in 1913, the Fed's