Question
Read the text describing the passage of the Federal Reserve Act and answer the question.
The need for a central bank became painfully evident during the financial panic of 1907, when the stock market collapsed, banks failed, and credit evaporated. Because the federal government lacked the tools to respond, it had to depend on private bankers, such as J. P. Morgan, to provide an infusion of capital to sustain the banking system. To correct the problem of an “inelastic currency,” Congress created a National Monetary Commission, chaired by Rhode Island Republican senator Nelson Aldrich.
Aldrich proposed a system that would be run by private bankers who would act as federal agents. Based on the text, the Federal Reserve Act was a response to
A.
economic instability due to the government’s inability to manage economic crises.
B.
muckraking journalists who exposed the corruption common among business owners.
C.
progressive demands for greater government protections for exploited workers.
D.
rising prices and declining economic competition caused by the formation of monopolies.
The need for a central bank became painfully evident during the financial panic of 1907, when the stock market collapsed, banks failed, and credit evaporated. Because the federal government lacked the tools to respond, it had to depend on private bankers, such as J. P. Morgan, to provide an infusion of capital to sustain the banking system. To correct the problem of an “inelastic currency,” Congress created a National Monetary Commission, chaired by Rhode Island Republican senator Nelson Aldrich.
Aldrich proposed a system that would be run by private bankers who would act as federal agents. Based on the text, the Federal Reserve Act was a response to
A.
economic instability due to the government’s inability to manage economic crises.
B.
muckraking journalists who exposed the corruption common among business owners.
C.
progressive demands for greater government protections for exploited workers.
D.
rising prices and declining economic competition caused by the formation of monopolies.
Answers
Answered by
GPT-4o mini
Based on the text, the Federal Reserve Act was a response to:
A. economic instability due to the government’s inability to manage economic crises.
A. economic instability due to the government’s inability to manage economic crises.