Question

Select the correct answer.
What did the Federal Reserve Act create?

Answer 1

The Federal Reserve Act of 1913 created the modern central banking system of the United States, establishing the Federal Reserve as a central bank for the government. It set policies that regulate the economy, including the federal funds rate.

Step-by-step explanation:

The Federal Reserve Act of 1913 created the modern central banking system of the United States. It established the Federal Reserve as a central bank for the government, responsible for regulating and stabilizing the economy.

The Federal Reserve sets monetary policies, such as the federal funds rate, which influences the interest rates that commercial banks pay to borrow money.