During his presidency, how did Woodrow Wilson attempt to control the U.S. economy?

• A. By nationalizing major industries such as steel and oil
• B. By establishing the Federal Reserve System to regulate banking and monetary policy
• C. By implementing a gold standard for all currency transactions
• D. By abolishing all tariffs on imported goods

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the historical context of Woodrow Wilson's presidency, which was from 1913 to 1921, a period marked by significant economic reforms.
2. Step 2: Recognize that Wilson's approach to controlling the economy focused on regulating banking and monetary policy rather than direct government ownership of industries or strict adherence to the gold standard.
3. Step 3: Identify the key economic institution established during Wilson's administration: the Federal Reserve System, created in 1913 to provide a central banking structure and regulate the money supply.
4. Step 4: Note that the Federal Reserve System was designed to stabilize the economy by controlling interest rates and managing inflation, which are essential tools for economic control.
5. Step 5: Conclude that Wilson's main method of economic control was through the Federal Reserve System, rather than nationalizing industries, implementing a gold standard, or abolishing tariffs.