Question

The Federal Reserve Act Multiple Choice helped to reduce loans to private banks. was regulated by a board whose members were elected by Congress. created a new type of paper currency. was designed to push troubled banks out of business. created sixteen regional banks.

Answer 1

The correct answers are A) helped to reduce loans to private banks and C) created a new type of paper currency.

The Federal Reserve Act helped to reduce loans to private banks and created a new type of paper currency.

With the passing of the Federal Reserve Act of December 23, 1919, signed by President Woodrow Wilson, the government initiated with the Federal Reserve system that acted as the Central Bank of the United States. It had twelve regional banks that supplied all the money for the country. Its headquarters are located in Washington D.C., and the commonly known as the Fed supervises the financial and economic situation in the country, the monetary supply, and tries to control inflation.