The Fed has been called "the lender of last resort" because it
A) is the biggest bank in the country.
B) is the only lender to the federal government.
C) serves as the last place to acquire loans for banks suffering cash management, or liquidity, problems.
D) a and b
E) all of the above
C
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School vouchers can be used to arrive at the efficient market equilibrium because vouchers
A) increase demand for schooling. B) increase supply of schooling. C) decrease the cost of schooling. D) decrease supply of schooling.
Refer to Table 27-2. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president want to keep real GDP at its potential level in 2017, they should A) decrease the discount rate. B) decrease government purchases. C) conduct expansionary fiscal policy. D) buy Treasury securities.