Federal Reserve System
The central banking system of the United States of America created on December 23, 1913
Real World Example
The Federal Reserve System was created during the Progressive Era, a time when people wanted to reform and improve society, including the economy. Before the Fed, there were frequent financial panics and bank failures, which caused people to lose their savings. The Federal Reserve was established to stabilize the economy by controlling the money supply and interest rates. Today, the Federal Reserve still plays a crucial role in the economy by influencing inflation and employment rates. For example, if you or your family are thinking about buying a house, the interest rates set by the Federal Reserve can affect how much your monthly mortgage payment will be.
Practice Version
