What did the federal reserve refuse to do in order to keep a run on the banks from causing a failure of the us banking system? a) the fed refused to act and ignored the situation completely. b) the fed refused to enact a loose monetary policy by releasing money into the system. c) the fed refused to enact a tight monetary policy by tightening the monetary policy to stop inflation. d) the fed called in all the gold reserves in order to keep the federal government running during the crisis.

The correct answer is B) The Fed refused to enact a loose monetary policy by releasing money into the system.

What the Federal Reserve refused to do in order to keep a run on the banks from causing a failure of the US banking system was "The Fed refused to enact a loose monetary policy by releasing money into the system."

In the United States, the Federal Reserve acts as the central bank of the country.  The also called Fed oversees the banking operations and controls inflation to maintain stable prices. Another important function of the Fed is that it regulates the banks of the country and works hard to maintain the stability of the financial markets in order to avoid another crash such as the stock market crash that provoked the Great Depression of 1929. With a good monetary policy in the United States, the nation's economy can constantly grow.

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