Question

In 1913 a new ______________ banking system was created by Congress to be in charge of the money supply, act as a "banker’s bank" and be a "lender of last resort"..A. central B. nationalC. commercialD. postal

Answer 1

Answer:

A. central

Explanation:

The central banking system of America or the Federal Reserve System was created in December 1913, through the enactment of the Federal Reserve act. It was founded by the Congress to provide a stable, safe, and flexible financial and monetary system. The formation of the central banking system was brought about by the desire to have control of the monetary system to alleviate financial crises.

The central banking system performs various functions that are significant to the economic stability and growth in the US.  A few of those functions include.

1. Implement monetary polices to influence stable prices, achieve target unemployment and inflation rates.
2. Regulating and supervising commercial bank activities in the US.
3. Providing a secure and safe payment system in the country
4. Acts as the lender of the last resort