Federal Reserve Act of 1913 · US History

What was the primary purpose of the Federal Reserve Act of 1913?

  1. To eliminate all private banks nationwide
  2. To regulate all international trade agreements
  3. To abolish the use of paper currency entirely
  4. To establish a U.S. central banking system
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Correct answer: To establish a U.S. central banking system

The Federal Reserve Act created the Federal Reserve System as the central bank of the United States. Its main purpose was to provide a safer and more flexible financial system.

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