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Theoretically, During a ﬁNancial Crisis, the Fed Is Supposed to Act

Question 45

Multiple Choice

Theoretically, during a ﬁnancial crisis, the Fed is supposed to act as a lender of last resort to

A) all insolvent banks.
B) insolvent banks that are illiquid.
C) solvent banks that are illiquid.
D) insolvent banks that are highly liquid.

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