Progressive Movement Practice Exam

What is a key similarity between the National Bank proposed by Alexander Hamilton and the Federal Reserve System?

1. Provided low-interest loans to farmers

2. Declared unconstitutional by the Supreme Court

3. Regulated the stock market

4. Sought to provide a sound currency for the nation

The correct answer is: Sought to provide a sound currency for the nation

The National Bank proposed by Alexander Hamilton and the Federal Reserve System both aimed to provide a sound currency for the nation, which is central to their roles in America’s financial systems. Hamilton's National Bank was established to stabilize and improve the nation’s credit and to manage the money supply, ensuring that the economy had a reliable currency to facilitate trade and economic growth. Similarly, the Federal Reserve System was created to serve as the central bank of the United States, regulating the money supply, managing inflation, and aiming to stabilize the economy through monetary policy. Both institutions were designed to ensure that a stable and dependable currency underpinned the economy, allowing for smoother transactions and fostering a conducive environment for commerce and economic expansion.