Question

The primary reason for the creation of the Federal Reserve System LOADING... ​was: A. to create a single central bank similar to the Bank of England. B. to stabilize​ short-term interest rates. C. to reduce or eliminate future bank panics. D. to eliminate​ state-chartered banks.

Answer 1

Answer: (C) to reduce or eliminate future bank panics.

Explanation:

The Federal Reserve System being the central reserve system in the US was created with the primary objective of reducing and eliminating bank panics in periods of recessions and depressions and other bank related matters.