When the Federal Reserve System was first established, its founders intended the Fed to
A)assist the Treasury in collecting taxes.
B)be primarily responsible for government regulations.
C)pursue an active monetary policy to stabilize the economy.
D)provide protection against financial panics by acting as the lender of last resort.

Question

Quizplus · Accepted Answer

The primary goal of the Fed when it was established was to prevent financial panics by acting as a lender of last resort. Its role in monetary policy and regulation of the financial system developed over time.

When the Federal Reserve System Was First Established, Its Founders