The immediate impetus for the establishment of the Federal Reserve System came from
A)severe outbreaks of inflation in the early 1900s.
B)four severe banking panics between 1873 and 1907.
C)the discovery of gold in Alaska.
D)the desire to copy the founding of the Bank of England.

Question

Quizplus · Accepted Answer

The establishment of the Federal Reserve System was a response to four severe banking panics between 1873 and 1907, which had destabilized the banking system and the economy as a whole. The Federal Reserve System was created to provide a stable and flexible monetary system to prevent such panics in the future.

The Immediate Impetus for the Establishment of the Federal Reserve