The Federal Reserve that was established in 1907 was to be a "lender of last resort," loans money to small businesses that are unable to obtain loans through private banks.

Question

Quizplus · Accepted Answer

While the Federal Reserve was established in response to the panic of 1907, its primary purpose was to act as a central bank and regulate the economy, rather than to loan money to small businesses directly. Its role as a lender of last resort developed over time as its powers expanded.

The Federal Reserve That Was Established in 1907 Was to Be