How did the Federal Reserve System improve the banking industry in the twentieth century?

a. It created a reserve of money that all banks would use for loans.

b. It created a branch of government to monitor the banking system.

c. It served as a decision-making body to regulate the federal banks.

d. It served as a central bank with the power to lend to other banks in time of need.

Question

History

Martin Kim

5 December, 14:56

How did the Federal Reserve System improve the banking industry in the twentieth century?

a. It created a reserve of money that all banks would use for loans.

b. It created a branch of government to monitor the banking system.

c. It served as a decision-making body to regulate the federal banks.

d. It served as a central bank with the power to lend to other banks in time of need.

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Paulina Duarte · Answer 1

One of the ways in which the Federal Reserve System improved the banking industry in the twentieth century was that " d. It served as a central bank with the power to lend to other banks in time of need," since this injected much-needed capital into the economy.