What drove the creation of the Federal Reserve System?

The creation of the Federal Reserve System was primarily driven by the need to supervise banking and commerce effectively. In the late 19th and early 20th centuries, the United States faced several financial panics that exposed vulnerabilities in the banking system and highlighted the lack of a central authority to manage monetary policy and ensure stability within the banking sector.

The Federal Reserve was established in 1913 to address these issues by serving as a central bank that could oversee and regulate banks. It aimed to create a more stable and secure financial system, providing a mechanism for problem resolution among banks, managing monetary policy, and supplying liquidity during times of economic stress. By supervising banks, the Federal Reserve also helps to maintain public confidence in the banking system and protects depositors from bank failures, thereby promoting general economic stability.

The other options do not fully capture the primary intention behind the Federal Reserve's establishment. While promoting international trade and establishing a federal currency are related to the broader financial landscape, they were not the central focuses driving the creation of the Federal Reserve. Additionally, the goal was not to eliminate banks but rather to create a more organized and regulated banking environment.