As a response to the Panic of 1907, Congress created the Federal Reserve System, consisting of twelve regional banks. A. TrueB. False

Question

Leroy Horne

History

8 January, 09:53

As a response to the Panic of 1907, Congress created the Federal Reserve System, consisting of twelve regional banks. A. TrueB. False

+4

Answers (1)

Know the Answer?

Quinton Garrison · Answer 1

A. True

Explanation:

During the Panic of 1907, there were a series of bank runs during a period of three weeks. This happened because the stock market fell for a while, and people believed that this was a sign of an economic recession.

Congress created the Federal Reserve in 1913, with the goal of giving it the power to control the money supply, the interest rates, and with the task of regulating the banking system.