Structure of the Bureaucracy - AP Government and Politics

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Question

The Federal Reserve was created in response to                     .

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Answer

The Federal Reserve was created in 1913 to act as a central organization to regulate the money supply of the United States and to establish moderately long term interest rates. In the years before the Federal Reserve, financial panics were common and extremely detrimental to the growth of the economy; the Panic of 1807 is usually considered the direct tipping point. Over the years, the power of the Federal Reserve has greatly expanded, particularly during the Great Depression Era, to try to prevent economic depression and recession.

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