Multiple Select Question

Question

Select all that apply

Which of the following were deemed by Congress in the early 20th century to be essential for an efficient banking system?
Multiple select question.

Centralization

Decentralization

International involvement

Freedom from regulation

Public control

Answer 1

In the early 20th century, Congress deemed the following as essential for an efficient banking system:

• Centralization
• Public control

These elements were part of the discussions leading to reforms and the establishment of regulatory structures, notably with the creation of the Federal Reserve System in 1913, which aimed to centralize and regulate the banking system to enhance stability and public confidence. Decentralization, international involvement, and freedom from regulation were generally not seen as essential for the efficiency and stability that Congress sought at that time.