How did the Federal Reserve System hold up during the Great Depression?

A. The banks in the FRS coordinated their actions, so the country was able to avoid economic chaos

B. The members of the FRS created a central bank to fund and manage government spending, which further hurt the economy

C. The FRS did not work well because the 12 regional banks each acted independently

D. The FRS revised its monetary policy so that only the President could set the national discount rate, providing relief to banks

I am not sure between B and C

Question

Business

Elyse Armstrong

26 August, 22:47

How did the Federal Reserve System hold up during the Great Depression?

A. The banks in the FRS coordinated their actions, so the country was able to avoid economic chaos

B. The members of the FRS created a central bank to fund and manage government spending, which further hurt the economy

C. The FRS did not work well because the 12 regional banks each acted independently

D. The FRS revised its monetary policy so that only the President could set the national discount rate, providing relief to banks

I am not sure between B and C

+5

Answers (2)

Know the Answer?

Stormy · Answer 1

The right answer for the question that is being asked and shown above is that: "B. The members of the FRS created a central bank to fund and manage government spending, which further hurt the economy." This is how the Federal Reserve System hold up during the Great Depression

Skylar House · Answer 2

During the Great Depression, the Federal Reserve System did not work well because the 12 regional banks all acted independently from each other. The Great Depression started on October 29, 1929 and finally ended in 1939.