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Directions: Answer the following questions about the Federal Reserve System.

In which year did Congress create the Federal Reserve System?

A. 1907

B. 1913

C. 1929

D. 1932

What event convinced Congress that a central bank was necessary?
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Correct Response:

Question: 1—2

Which of the following are part of the Federal Reserve System? Select all that apply.

A. The Board of Governors

B. The Regional Reserve Banks

C. The Federal Open Market Committee

D. The state member banks

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Discussion Board Topic: The Purpose of the Federal Reserve

Use what you have learned in this lesson to write a summary paragraph. Your paragraph should explain:

  • Why the Federal Reserve System was established.
  • When the Federal Reserve System was established.

Record your summary by clicking on the discussion board and responding to the thread titled "The Purpose of the Federal Reserve."


The Federal Reserve System was developed and continues to develop as an interesting blend of public and private, centralized and decentralized. As you continue through this course we will break down the structure and responsibilities to see what the Fed is and what it does.