Final answer:
The Federal Reserve System was established by the Federal Reserve Act of 1913, creating the modern central banking system of the United States.
Step-by-step explanation:
The Federal Reserve System was established by the Federal Reserve Act of 1913. The act created the modern central banking system of the United States and established the Federal Reserve as the nation's central bank. The Federal Reserve is responsible for regulating financial institutions, conducting monetary policy, providing services to the government, maintaining the payment system, and enforcing consumer protection laws.