(Last Word) the Federal Reserve Policy of "Extend and Pretend

Multiple Choice

(Last Word) The Federal Reserve policy of "extend and pretend"

A) meant that the Fed did not distinguish in its lender of last resort function between solvent and insolvent firms.
B) was praised for preventing a financial meltdown in which many solvent and insolvent firms would have failed.
C) is accurately described by all of the other answers.
D) was criticized for increasing moral hazard in the financial system.