Which statement accurately defines the Federal Reserve's founding?

• A. It was established by the Treasury in 1900.
• B. It was founded by the U.S. Congress in 1913.
• C. It was formed by private banks in 1920.
• D. It was created by the World Bank.

Answer: (B)

This question tests who created the U.S. central banking system and when it happened. The Federal Reserve was established through legislation passed by Congress—the Federal Reserve Act—and signed into law in 1913. That means its founding came from the legislative branch, not the Treasury, not private banks acting on their own, and not an international organization. The act set up a central banking structure with a Board of Governors and twelve regional banks to oversee monetary policy and financial stability, with the president signing the law to enact it. The other options don’t fit because the Treasury didn’t create the Fed, private banks didn’t unilaterally form it, and the World Bank is a separate international institution established much later.