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Monetary Policy: The Federal Reserve

Question 3 • IL-Economics

[[___] established the Federal Reserve system to avoid consumer panics.

Answer
A
Private banks
B
The Constitution
C
The Federal Reserve Act of 1913

Explanation

The Federal Reserve Act of 1913 established the Federal Reserve System. It was created in part to make the banking system more stable and reduce the risk of financial panics, so the correct choice is “The Federal Reserve Act of 1913.”

AI-written and checked against the verified answer.