Asked by Emily Gellis on May 08, 2024
Verified
The purpose of establishing the Federal Reserve System was
A) to regulate commercial banking.
B) to provide for a more elastic currency.
C) to increase the confidence in the nation's banks.
D) All of the choices are correct.
Federal Reserve System
The Federal Reserve System, which is the main banking authority in the U.S., oversees monetary policy.
Elastic Currency
A currency system that can expand or contract in supply in response to economic needs, often managed by a central banking authority.
Nation's Banks
Banks that operate within a specific country, serving its economy and citizens.
- Gain insight into the responsibilities and roles of the Federal Reserve System in the United States.
- Identify the historical backdrop and objectives that led to the formation of the Federal Reserve System.
Verified Answer
BD
Brittany DonaldsonMay 11, 2024
Final Answer :
D
Explanation :
The establishment of the Federal Reserve System was intended to achieve all of the purposes mentioned in the answer choices - to regulate commercial banking, provide for a more elastic currency, and increase confidence in the nation's banks.
Learning Objectives
- Gain insight into the responsibilities and roles of the Federal Reserve System in the United States.
- Identify the historical backdrop and objectives that led to the formation of the Federal Reserve System.