The Federal Reserve Act of 1913 established the Federal Reserve System. What was the purpose of setting up the Federal Reserve System? to strengthen the nation's military forces to build banks in every state to oversee and regulate commercial banks to do away with trusts

The Federal Reserve Act of 1913 established the Federal Reserve System, this system was established to deal with banking issues and concerns of the federal government. Major concerns included the issue of bank panics. Therefore, the best answer is to regulate commercial banks.