Why was the federal reserve act important?

Answer 1

The Federal Reserve is the central bank of the United States of America and it supervises/oversees the banking operations of all banks in USA. They are responsible for the proper functioning of all the banks and they are also the lender to the banks (The place where banks go to borrow money if they are short of funds)

Answer 2

Congress passed the Federal Reserve Act because JP Morgan was making a whole lot of money. Congress looked at his operation and decided that the government belonged in that business. When JP Morgan died in 1913, congress decided they could not let an opportunity like that get away from them. As a result, the government took over JP Morgan's business and renamed it The Federal Reserve. It has been successful because the government did not create it, private enterprise did.

Answer 3

The Federal Reserve Act was important because it allowed the government to supervise banks.