Recall Application 4, "Coping with the Financial Chaos Caused by the Mortgage

Multiple Choice

Recall Application 4, "Coping with the Financial Chaos Caused by the Mortgage Crisis," to answer the following
questions:
-According to Application 4, by buying commercial paper or extending short term loans to corporations, the Fed is applying which of its primary functions to private corporations?

A) lender of last resort
B) provide a system of check collection and clearing
C) conduct monetary policy
D) supply currency to the economy