When the Federal Reserve System was established in 1913,its main policy goal was
A)encouraging strong economic growth.
B)promoting price stability.
C)preventing bank panics.
D)keeping employment high.

Question

Quizplus · Accepted Answer

When the Federal Reserve System was established in 1913, its main policy goal was to prevent bank panics. The Fed was created in response to the frequent bank runs and panics that occurred in the late 19th and early 20th centuries. Its primary mission was to provide stability to the banking system by acting as a lender of last resort and regulating the money supply. The Fed's other goals, such as promoting price stability and maximizing employment, were added later.

When the Federal Reserve System Was Established in 1913,its Main