When the Fed Was Created in 1913

question 14

Multiple Choice

When the Fed was created in 1913,

• A)it had no role in the management of the nation's economy.
• B)it was restricted to providing emergency loans to financial institutions.
• C)it adhered to a strictly supply-side policy focus.
• D)its primary economic management tool was to reduce inflation by restricting the money supply.
• E)it was far more likely to increase the money supply by lowering interest rates than to restrict it by raising them.

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Definitions:

Social And Political Crises

Situations marked by severe instability, unrest, or conflict within a society or political system, often leading to significant change or upheaval.

English Colonies

These were territories around the world, including in North America, Africa, and Asia, that were under the control and governance of England before becoming independent nations.

Late Seventeenth Century

The closing decades of the 17th century, often referring to the period from 1660 to 1700, which was characterized by both turmoil and progress in various world regions.

Poverty

A state where an individual or community lacks the financial resources and essentials for a minimum standard of living.