Federal Reserve System
The central banking system of the United States of America created on December 23, 1913
Real World Example
The Federal Reserve System was important during the rise of totalitarianism (1919-1939) because it helped stabilize the U.S. economy during a time of global uncertainty and financial instability. It was created in response to past financial crises, aiming to provide a safer, more flexible, and stable monetary and financial system. This stability was crucial as other countries were experiencing economic turmoil, which often led to the rise of totalitarian regimes. Today, the Federal Reserve still plays a key role in managing the U.S. economy by setting interest rates and controlling money supply, which can influence inflation and employment levels. For example, if the Fed lowers interest rates, it might become cheaper for people to borrow money for things like buying a house, which can impact your community by boosting local businesses and job opportunities.
