Question

How did the Federal Reserve System improve the banking industry in the twentieth century?
a. It created a reserve of money that all banks would use for loans.
b. It created a branch of government to monitor the banking system.
c. It served as a decision-making body to regulate the federal banks.
d. It served as a central bank with the power to lend to other banks in time of need.

Answer 1

One of the ways in which the Federal Reserve System improved the banking industry in the twentieth century was that "d. It served as a central bank with the power to lend to other banks in time of need," since this injected much-needed capital into the economy.