One reason the U.S. government started the Federal Reserve System was to keep the banking power of the United States spread out among various districts. The Federal Reserve was established in 1913 to address issues of instability in the banking system, and it created a decentralized central banking system that allowed for regional Federal Reserve Banks to be established across the country, helping to distribute financial power and respond to local economic conditions.
What was one reason the U.S. government started a Federal Reserve System?
to have a place for banks to deposit their excess deposits
to make sure that the U.S. banks were obeying laws regarding banking
to provide consumers with access to funds for business expansion
to keep the banking power of the United States spread out among various districts
1 answer
1 answer