Multiple Choice
The concept of "lender of last resort" is that when
A) lending decreases, the Fed will be the last to resort to higher interest rates.
B) borrowing increases, the Fed will be the last to increase lending.
C) commercial banks are hesitant to lend, the Fed will step in and increase reserves.
D) a borrower has tried everyone else, the Fed will lend directly to them.
Correct Answer:
Verified
Correct Answer:
Verified
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