Which multilateral institution serves as the lender of last resort?

When analyzing the complete model, which can predict short-run and long-run changes in the exchange rate, one must:

a. start with short-run changes and move toward long-run changes, and thereby determine expectations. b. use only the long-run model because the short-run model is largely irrelevant. c. start with the long-run equilibrium positions where expectations of future exchange rates can be determined, and use those expectations to feed into the short-run model. d. use the short-run model only, because the long run is only a theoretical concept.

If one borrower fails to repay a loan,

a. most banks will have serious problems. b. a bank will attempt to sell the loan. c. it will not affect a diversified bank d. the bank will report this to the borrower's employer.