When the Federal Reserve System was created in 1913, it was designed to
A) play the role of a passive service agency.
B) stabilize the economy through the use of open market operations.
C) collect taxes for the federal government.
D) mint new gold and silver coins.

Question

Quizplus · Accepted Answer

The Federal Reserve System was initially designed to act as a passive service agency to provide a safer, more flexible, and stable monetary and financial system, primarily by serving as a lender of last resort and providing banking services to the government and financial institutions.

When the Federal Reserve System Was Created in 1913, It