The Federal Reserve Was Established in 1913 to

question 167

Multiple Choice

The Federal Reserve was established in 1913 to

• A)prevent inflation by decreasing the money supply.
• B)stimulate the economy by increasing bank reserves.
• C)stop bank panics by acting as a lender of last resort.
• D)prevent bad loans by requiring banks to hold reserves.

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Definitions:

Functionalism

A theory in sociology and psychology which emphasizes the importance of understanding the purpose or function of behavior, institutions, and processes in society and the mind.

Verifiability Of Observation

The principle that empirical observations must be capable of being checked or validated by other observers.

Behaviourism

Behaviourism is a theory of learning based on the idea that all behaviors are acquired through conditioning, emphasizing observable behaviors over internal states.

Freud's Theory

A set of psychoanalytic principles created by Sigmund Freud that emphasize the role of unconscious processes in shaping thoughts, feelings, and behaviors.