Asked by

Morgan Heideman
on Oct 12, 2024

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The Federal Reserve System was NOT

A) established with the 1913 passage of the Federal Reserve Act.
B) the first attempt to have a United States central bank.
C) intended to act as a "lender of last resort."
D) designed to lend money to inherently sound banks so that they can survive financial panics.

Federal Reserve Act

Legislation passed in 1913 that established the Federal Reserve System as the central bank of the United States, intended to provide the country with a safe, flexible, and stable monetary and financial system.

Central Bank

The primary monetary authority of a country, responsible for regulating the financial system, issuing currency, and controlling inflation and interest rates.

Lender of Last Resort

An institution, usually a central bank, that offers loans to banks or financial institutions that are struggling financially or are considered highly illiquid.

  • Recognize the historical context and purposes behind the establishment of the Federal Reserve System.
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Kolachi PomborOct 18, 2024
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