What did the Federal Reserve Act of 1913 establish?

The Federal Reserve Act of 1913 established a framework for regulating the banking system in the United States. This pivotal legislation created the Federal Reserve System, which serves as the central bank of the nation. Its primary purposes include regulating and overseeing commercial banks, conducting monetary policy, and providing financial services to the government and financial institutions. By introducing this system, the act aimed to provide more stability to the financial system, reduce the risk of bank failures, and manage inflation and employment levels effectively. The establishment of the Federal Reserve was a response to the financial panics and bank runs that characterized the late 19th and early 20th centuries, reflecting a growing recognition of the need for a more organized and secure banking structure.

The other options are unrelated to the primary function of the Federal Reserve Act, as they pertain to environmental efforts, military policies, and labor laws, which fall outside the scope of banking regulation.