If the Central Bank Can Act as a Lender of Last

question 41

Multiple Choice

If the central bank can act as a lender of last resort during a banking panic,banks can

• A)call in their loans to their customers and eventually restore the public's faith in the banking system.
• 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)encourage the public to borrow directly from the central bank,and this will worsen the banking panic.

---

Definitions:

Group Contract

An agreed-upon set of rules and guidelines by which a group operates, often defining roles, expectations, and norms.

Outpatients

Individuals who receive medical treatment or services without being admitted to a hospital or similar facility for overnight stay.

Mental Health Center

A facility offering services and support for individuals dealing with mental health issues, including counseling, therapy, and education.

Resistant Group Members

Individuals within a group who oppose or resist changes, ideas, or directives.