The correct answer is "The Federal Reserve Act."
The law that was passed by Congress to prevent financial panics was The Federal Reserve Act.
On December 23, 1913, President Woodrow Wilson signed into law the Federal Reserve Act.
After people live fearful moments during the so-called Panic of 1907, where the New York stock market suddenly fell and scared bankers, the US government recognized the necessity of having a Central Bank. So President Wilson authorized the creation of the Central Banking System and the Fd¿ederal Reserve System.
