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The nation's monetary system was strengthened and stabilized by the Federal Reserve Act of 1913. While the Fed has been mainly unsuccessful in preventing inflation since the Great Depression, it has been mostly successful in doing away with deflation, which was a frequent occurrence under the pre-Fed, post-Civil War US monetary system.

What issues was the Federal Reserve Act meant to address?

Federal Reserve Act was established by Congress to give the country a more secure, adaptable, and stable financial and monetary system. On December 23, 1913, President Woodrow Wilson signed the Federal Reserve Act into law, thereby establishing the Federal Reserve. In order to ensure that banks had the resources to meet the needs of their customers, the Federal Reserve System was founded to increase the flow of money and credit throughout the United States.

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