22
QuizMultiple Choice

Fascism and Aggression

Question 22 • S1S-OC: US History A (E1202 - AG)

The main purpose of the Federal Reserve Act of 1913 was to

Answer
A
establish an alternative to commercial banks.
B
regulate banks’ mortgage-lending policies.
C
establish a distribution system for currency.
D
oversee and regulate commercial banks.

Explanation

The Federal Reserve Act of 1913 created the Federal Reserve System, giving the country a central banking system that could supervise and regulate member commercial banks. It also helped stabilize the banking system and manage the money supply. Its main purpose was not to replace commercial banks or specifically regulate mortgage lending, so the best answer is “oversee and regulate commercial banks.”

AI-written and checked against the verified answer.

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