The Central Banking System Established by the Federal Reserve Act

question 66

Multiple Choice

The central banking system established by the Federal Reserve Act of 1913 ___________________.

• A) made direct loans to businesspersons for plant expansions and investment spending
• B) insured private bank accounts against loss
• C) could control the amount of money in circulation by adjusting the discount rate
• D) tied the money supply to the supply of gold in the United States Treasury

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