THE PROGRESSIVE ERA 1900 1917
PROGRESSIVE POLITICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Law that set up a system of federal banks and gave government the power to control the money supply
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Law that substantially reduced the tariff; lost revenue was paid for by the graduated income tax created by the 16th Amendment
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Law that weakened monopolies and upheld the rights of unions and farm organizations
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Law that allowed the president to protect areas of scientific or historical interest on federal lands as national monuments
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Detailed explanation-1: -The 1913 Federal Reserve Act, signed into law by President Woodrow Wilson, gave the 12 Federal Reserve banks the ability to print money to ensure economic stability.
Detailed explanation-2: -What Is the 1913 Federal Reserve Act? The 1913 Federal Reserve Act is legislation in the United States that created the Federal Reserve System. 1 Congress passed the Federal Reserve Act to establish economic stability in the U.S. by introducing a central bank to oversee monetary policy.
Detailed explanation-3: -Federal Reserve Banks are often called the “bankers’ banks” because they provide services to commercial banks similar to the services that commercial banks provide for their customers. Federal Reserve Banks distribute currency and coin to banks, lend money to banks, and process electronic payments.
Detailed explanation-4: -The Fed can influence the money supply by modifying reserve requirements, which generally refers to the amount of funds banks must hold against deposits in bank accounts. By lowering the reserve requirements, banks are able to loan more money, which increases the overall supply of money in the economy.
Detailed explanation-5: -The primary way the Fed controls the monetary base is through open market operations: buying or selling securities. To increase the monetary base, the Fed buys securities from any party and pays with a check.