In 1914, the United States Congress formed the Federal Trade Commission primarily to achieve which goal in regulating business practices?

Introduction / Context:
The Federal Trade Commission, often abbreviated as the FTC, is a key regulatory body in the economic history of the United States. Established in 1914 during the Progressive Era, it reflects growing concern about monopolies, unfair competition and deceptive practices in the marketplace. Many competitive exams ask why Congress created the FTC, because this links economic policy, consumer protection and the broader reform movements of the early twentieth century.

Given Data / Assumptions:
- The year of creation, 1914, is provided in the question.
- The body being discussed is the Federal Trade Commission, not the Federal Reserve or other agencies.
- The options present different possible purposes: regulating unfair practices, creating a central bank, nationalising industry or promoting completely free trade.
- We assume a basic understanding that progressive reforms sought to regulate, not completely abandon, market systems.

Concept / Approach:
The core idea behind the FTC was to prevent unfair methods of competition and protect both smaller businesses and consumers from powerful corporations. Unlike a central bank, which manages money and credit, the FTC focuses on trade practices such as false advertising, price discrimination and attempts to create monopolies. Therefore, when choosing the correct option, we look for the description that emphasises monitoring and controlling unfair business behaviour rather than managing currency, owning industries or removing all trade barriers.

Step-by-Step Solution:
Step 1: Identify the agency correctly as the Federal Trade Commission, linked to trade and business practices.Step 2: Recall that the Progressive Era reforms targeted trusts, monopolies and deceptive practices in commerce.Step 3: Compare the options and note that only one mentions monitoring unfair business practices that might lead to monopolies.Step 4: Eliminate the option about a central bank, which refers instead to the Federal Reserve System created in 1913.Step 5: Eliminate options about nationalising industries or removing all tariffs, because these were not the goals of the FTC.Step 6: Select the option that best reflects regulation of unfair competition and protection of consumers.

Verification / Alternative check:
As an alternative check, think of examples of FTC activity. The commission has pursued actions against false advertising, anti competitive mergers and price fixing. All these involve monitoring unfair practices and preventing monopolistic control. It does not set interest rates, print money, own factories or negotiate free trade agreements. This real world pattern of activity confirms that the purpose described in the correct option fits the historical role of the Federal Trade Commission.

Why Other Options Are Wrong:
Option B is wrong because creating a central bank to control the money supply was the mission of the Federal Reserve, not the FTC. Option C is incorrect since the United States did not nationalise all major industries; the Progressive movement favoured regulation rather than total state ownership. Option D is also wrong because the country continued to use tariffs and trade policies, and the FTC was not set up to remove all barriers to international trade.

Common Pitfalls:
Students sometimes confuse different agencies created around the same time, such as mixing up the Federal Reserve and the Federal Trade Commission simply because both include the word federal. Another mistake is to assume that all reform era changes were extremely radical, such as full nationalisation or complete free trade, whereas most reforms focused on balancing private enterprise with public oversight.

Final Answer:
Congress formed the Federal Trade Commission in 1914 primarily to monitor unfair business practices that might lead to monopolies and harm consumers.