The Fed's Lender-Of-Last-Resort Function

question 23

Multiple Choice

The Fed's lender-of-last-resort function

• A)has proven to be ineffective.
• B)cannot prevent runs by large depositors.
• C)is no longer necessary due to FDIC insurance.
• D)creates a moral hazard problem.

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Definitions:

Primary Care Physician

A healthcare provider who offers general medical care for a wide range of health issues, often serving as the first point of contact for patients.

Social Worker

A professional concerned with helping individuals, families, groups, and communities to enhance their individual and collective well-being.

State Medicaid

A state-managed program that provides health coverage to eligible low-income adults, children, pregnant women, elderly adults, and people with disabilities.

Federal Medicare

A U.S. government health insurance program for people who are 65 years or older, and for some younger people with disabilities.