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The Federal Reserve System regulates the nation's supply of money and credit to do its best to ensure that the growth of money and credit will be adequate to meet the longer term needs of a steadily expanding economy and take actions on a short term basis to slow or accelerate this growth in order to dampen inflationary or deflationary pressures.
Wiki User
∙ 9y ago
Wiki User
∙ 12y agoBecause banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why the Federal Reserve regulates the banks to ensure that customers are protected and the country's economy is safeguarded.
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What was the Federal Reserve Act designed to prevent?
Financial panicsBankruptciesBoom and bust economyfinacial panics
What industry did the federal reserve act mainly affect-?
The Federal Reserve Act mainly affected the banking industry.
How many federal reserve districts did the Federal Reserve Act divide the US into?
There are twelve Federal Reserve districts in the U.S.
Who signed the Federal Reserve Act?
President Woodrow Wilson signed the Federal Reserve Act into law in 1913.
The Federal Reserve Act of 1913 created a?
The Federal Reserve Act of 1913 is an Act of Congress and signed into law by US President Woodrow Wilson. The Federal Reserve System's original purposes were to give the country an elastic currency, to provide facilities for discounting commercial paper and to improve the supervision of banking. It was recognized, however, that the System would be given broader powers in the future.
What law was passed by congress to prevent financial panic?
The Federal Reserve Act...Apex:)
What was the Federal Reserve Act designed to prevent?
Financial panicsBankruptciesBoom and bust economyfinacial panics
What was the singular achievement of the Federal Reserve Act?
Establishing the Federal Reserve was the singular achievement of the Federal Reserve Act.
What industry did the federal reserve act mainly affect-?
The Federal Reserve Act mainly affected the banking industry.
What industry did the federal reserve act affect?
The Federal Reserve Act mainly affected the financial institutions across America. It also affected the bankers, lenders, credit bureaus, and especially the stock markets.
The Federal Reserve Act was made in response to what?
The act was a response to the recurring bank failures and financial panics that had plagued the nation.
What law was passed by congress to prevent financcial panics?
The Federal Reserve Act...Apex:)
What industry did federal Reserve act mainly affect?
The Federal Reserve Act mainly affected the financial institutions across America. It also affected the bankers, lenders, credit bureaus, and especially the stock markets.
What industry did the federal reserve mainly affect?
The Federal Reserve Act mainly affected the financial institutions across America. It also affected the bankers, lenders, credit bureaus, and especially the stock markets.
How many federal reserve districts did the Federal Reserve Act divide the US into?
There are twelve Federal Reserve districts in the U.S.
Who signed the Federal Reserve Act?
President Woodrow Wilson signed the Federal Reserve Act into law in 1913.
What did the federal reserve act signed by president Woodrow Wilson in 1913 establish?
The Federal Reserve.
