Question

6) Drag and drop the best answers to complete the sentences.

What were the results of the Federal Reserve Act of 1913?
a. created the

System

b. divided the country into 12 regions with a(n)

in each region

c. required all

to become members of the Federal Reserve System

d. established how much money member banks must hold in


e. place limits on the amount of money banks could



f. controlled credit expansion through control of the

, which is the amount of interest the Federal Reserve charges member banks on the money they borrow from the Fed

g. issues paper currency called

Notes

Answer 1

a. created the Federal Reserve System
b. divided the country into 12 regions with a Federal Reserve Bank in each region
c. required all banks to become members of the Federal Reserve System
d. established how much money member banks must hold in reserve
e. placed limits on the amount of money banks could lend
f. controlled credit expansion through control of the discount rate, which is the amount of interest the Federal Reserve charges member banks on the money they borrow from the Fed
g. issued paper currency called Federal Reserve Notes