The central banking system established by the Federal Reserve Act of 1913 ___________________.

Question

Quizplus · Accepted Answer

The Federal Reserve Act of 1913 established the Federal Reserve System as central banking in the United States. Its main purpose was to stabilize the economy, and one of its primary tools was the ability to control the amount of money in circulation by adjusting the discount rate. It did not make direct loans to businesspersons for plant expansions, insure private bank accounts against loss, or tie the money supply to the supply of gold in the United States Treasury.

The Central Banking System Established by the Federal Reserve Act