When the Federal Reserve System was created, it was thought that its most important influence over monetary conditions would be:
A)lending to banks to bolster their reserve positions
B)open market operationsquantitative easing
C)the issuance of Federal Reserve notes
D)the changing of reserve requirements

Question

Quizplus · Accepted Answer

When the Federal Reserve System was created in 1913, its primary role was to provide a more stable and secure banking system, which included lending to banks to support their reserve positions and prevent bank runs.

When the Federal Reserve System Was Created, It Was Thought