Question

Use the drop-down menus to answer these questions.

What economic challenge did the newly formed American federal government face?

Which act created nationally chartered banks and circulated notes backed by the federal government?

What economic event led to the creation of the Federal Reserve?

Answer 1

1) A large national debt from the Revolutionary War and lack of a stable national currency/revenue system.
2) The National Banking Act (the National Banking Acts of 1863–1864).
3) The Panic of 1907 (the 1907 financial panic).