Which institution did Woodrow Wilson create to regulate the nation’s banking system?

• A. Federal Reserve System
• B. Interstate Commerce Commission
• C. Securities and Exchange Commission
• D. Bank of the United States

Answer: (A)

The question is about creating a central banking system to oversee the country’s banks, a move meant to stabilize the monetary system after financial turmoil. Woodrow Wilson helped push the creation of the Federal Reserve System through the Federal Reserve Act of 1913, making it the nation’s central bank. It established twelve regional banks and a board to supervise banks, regulate credit, and influence interest rates, with the goal of preventing panics and providing a lender of last resort during crises. This system directly address banking stability and monetary policy, which is why it’s the right answer.

The other institutions came from different times and purposes: the Interstate Commerce Commission was created to regulate railroads and other transportation involved in commerce; the Securities and Exchange Commission was established later in 1934 to regulate the securities markets; the Bank of the United States existed in the early republic era and was not created by Wilson.