39
QuizMultiple Choice

Monetary Policy: The Federal Reserve — Quiz

Question 39 • Economics

Why is the Fed often referred to as a “lender of last resort,” or the last lender to turn to in a crisis?

Answer
A
It offers banks financial protection to keep consumers from panicking.
B
It keeps all failing banks afloat to avoid economic disruption.
C
It helps finance and stabilize central banks internationally.
D
It lends consumers money when other banks will not.
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