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Explain Why The Congress Passed The Federal Reserve Act Of 1913

218 Words1 Pages
Congress passed the Federal Reserve Act of 1913 to put more control of the banking system in the hands of the federal government. This act made the government the lender of the last resort. The Federal Reserve Act created a central bank or Federal Reserve System (FED). The Federal Reserve is responsible for creating a single currency and the managing of the central currency. All the banks in the nation were required to join the federal system, which created an uninformed banking system in the United States. By November 16, 1914, the 12 district banks were created with 25 branches inside. The Federal Reserve System also created the Monetary Policy to control inflation, gross domestic product (GDP), the unemployment rate, and striking a balance
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