What was a major factor leading to the establishment of the Federal Reserve System in the United States?

The establishment of the Federal Reserve System in the United States was primarily driven by the need to manage inflation and prevent financial crises. In the late 19th and early 20th centuries, the U.S. faced several banking panics, notably the Panic of 1907, which underscored the vulnerabilities of the banking system. These crises led to widespread bank runs, ultimately shaking public confidence in financial institutions.

The Federal Reserve was created in 1913 with the purpose of providing the nation with a safer and more flexible monetary and financial system. One of its main functions is to manage the money supply and implement monetary policy, which helps stabilize prices and control inflation. By responding to economic fluctuations and providing liquidity to the banking system in times of stress, the Federal Reserve plays a crucial role in preventing financial crises and maintaining economic stability.

The other options, while they touch on important issues in banking, do not encapsulate the primary reason for the Federal Reserve's establishment. Creating a stable currency for international trade and providing oversight of state banks are important functions but came secondary to the urgent need to handle inflation and mitigate crises in the banking sector. Ensuring equal access to banking services for all citizens reflects a broader concern about financial inclusivity, but the creation