Monetary Policy: The Federal Reserve

Question 5 of 11 • TX-Economics IC (Summer 25-26)

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

Answer

It lends consumers money when other banks will not.

It keeps all failing banks afloat to avoid economic disruption.

It helps finance and stabilize central banks internationally.

It offers banks financial protection to keep consumers from panicking.

Instruction

Instruction

Monetary Policy: The Federal Reserve

AssignmentMultiple Choice

Question 5 of 11 • TX-Economics IC (Summer 25-26)

Answer

It lends consumers money when other banks will not.

It keeps all failing banks afloat to avoid economic disruption.

It helps finance and stabilize central banks internationally.

It offers banks financial protection to keep consumers from panicking.

Instruction

Instruction

Monetary Policy: The Federal Reserve