A Level History - America - Practice Exam

JP Morgan was known for which of the following financial achievements?

1. Creating the Federal Reserve

2. Building the largest oil company

3. Creating huge corporations like U.S. Steel

4. Founding major banks across the nation

The correct answer is: Creating huge corporations like U.S. Steel

JP Morgan is primarily recognized for his significant role in the creation and consolidation of large corporations, notably U.S. Steel. This steel company was formed in 1901 when J.P. Morgan combined Carnegie Steel with several other steel companies, creating the first billion-dollar corporation in the United States. This action coined the term "trust" in the business world and exemplified the trend of monopolization during the Gilded Age, where a few corporations began to dominate entire industries. Morgan's financial strategies and mergers helped to shape the landscape of American industry, securing his legacy as a key figure in the rise of corporate America. While he was involved in various banking operations and did support the establishment of the Federal Reserve, those achievements are not what primarily defines his legacy in the same way as the formation of massive corporations like U.S. Steel. Therefore, focusing on his role in corporate consolidation illustrates his profound impact on American economic development during the early 20th century.