How did the Federal Reserve System hold up during the Great Depression?
A. The banks in the FRS coordinated their actions, so the country was able to avoid economic chaos
B. The members of the FRS created a central bank to fund and manage government spending, which further hurt the economy
C. The FRS did not work well because the 12 regional banks each acted independently
D. The FRS revised its monetary policy so that only the President could set the national discount rate, providing relief to banks

I am not sure between B and C

Question

How did the Federal Reserve System hold up during the Great Depression?
A. The banks in the FRS coordinated their actions, so the country was able to avoid economic chaos
B. The members of the FRS created a central bank to fund and manage government spending, which further hurt the economy
C. The FRS did not work well because the 12 regional banks each acted independently
D. The FRS revised its monetary policy so that only the President could set the national discount rate, providing relief to banks

I am not sure between B and C

whpalmer4 · Answer

I think we can safely rule out A :-)

angelwings996 · Answer

Yes, I knew that one was definitely out

angelwings996 · Answer

I was thinking B because it seems to it in but I am not sure. Plus I've seen a couple of things from researching tht some believe C

whpalmer4 · Answer

the reading I just did seems to suggest that the problem wasn't so much that they didn't work together, but that they did work together, unfortunately doing the wrong thing :-)

angelwings996 · Answer

Okay,so would it be C ? or would it be B?

whpalmer4 · Answer

Here's the article I read: http://www.econlib.org/library/Enc/GreatDepression.html Unfortunately, I don't think it makes a clear case for any of B,C,D. Maybe you'll have better luck with your reading of it.

angelwings996 · Answer

Alright, I'll figure it out. Thanks for your help