If the central bank can act as a lender of last resort during a banking panic, banks can
A) encourage the public to borrow directly from the central bank, and this will worsen the banking panic.
B) satisfy customer withdrawal needs and eventually restore the public's faith in the banking system.
C) borrow more and more money from the central bank, and this will lower its reserves and decrease the public's faith in the banking system.
D) call in their loans to their customers and eventually restore the public's faith in the banking system.
B
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Absolute advantage occurs when one producer has greater productivity compared to another producing the same product
Indicate whether the statement is true or false
The "natural" rate of unemployment is the unemployment rate toward which the economy gravitates in the
a. short run, and the natural rate is constant over time. b. long run, and the natural rate is constant over time. c. short run, and the natural rate changes over time. d. long run, and the natural rate changes over time.