The National Banking Act of 1863 accomplished all EXCEPT which of the following actions? Established the Federal Reserve System Mandated bank notes be backed up by reserves Banned state banks from issuing notes Established capital requirements for banks

## Step 1<br />The National Banking Act of 1863 was a significant piece of legislation in the United States that aimed to create a stable, uniform national currency and to establish a system of national banks. This act was passed during the Civil War and had several key components:<br /><br />## Step 2<br />### **Mandated bank notes be backed up by reserves**: <br />The act required that bank notes be backed by sufficient reserves, ensuring that the currency was backed by tangible assets.<br /><br />## Step 3<br />### **Banned state banks from issuing notes**: <br />The act prohibited state banks from issuing their own currency, which was a significant move towards centralizing the banking system.<br /><br />## Step 4<br />### **Established capital requirements for banks**: <br />The act set capital requirements for national banks, ensuring that they had a certain level of financial stability.<br /><br />## Step 5<br />### **Established the Federal Reserve System**: <br />This is the action that the National Banking Act of 1863 did not accomplish. The Federal Reserve System was established later, in 1913, with the Federal Reserve Act. It was not a part of the National Banking Act of 1863.