10
QuizMultiple Choice

Wilson's New Freedom

Question 10 • LA-US History A ? Distance Learning

The Federal Reserve Act of 1913 established the Federal Reserve System. What was the purpose of setting up the Federal Reserve System?

Answer
A
to strengthen the nation’s military forces
B
to build banks in every state
C
to oversee and regulate commercial banks
D
to do away with trusts

Explanation

The Federal Reserve System was created to provide a central banking structure and help stabilize the nation’s financial system. Its responsibilities include overseeing and regulating commercial banks, so choice C is correct. It was not established to strengthen the military, build a bank in every state, or eliminate trusts.

AI-written and checked against the verified answer.

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