The Federal Trade Commission Act of 1914 created what agency?

• A. Federal watchdog agency over corporations.
• B. Federal Reserve System.
• C. Interstate Commerce Commission.
• D. Department of Commerce.

Answer: (A)

The main idea is that the Federal Trade Commission Act of 1914 established a federal watchdog to police business practices. The newly created Federal Trade Commission was designed to curb unfair methods of competition and to stop unfair or deceptive acts or practices in commerce. This gave the federal government a centralized, independent body to enforce consumer protection and antitrust rules across industries, reflecting Progressive Era efforts to regulate big corporations and safeguard the public from deceptive practices.

Why the other options don’t fit: the Federal Reserve System is a central bank created to manage money, credit, and the economy, not a consumer-protection regulator. The Interstate Commerce Commission existed since the late 19th century to regulate railroads and later other carriers, so it predates the 1914 act. The Department of Commerce (and its predecessor structures) handled broader trade and governmental functions, but the 1914 act did not create that department.