When a Central Bank Acts as Lender of Last Resort

question 67

Multiple Choice

When a central bank acts as lender of last resort, it , and there is no cost to the .

• A)helps a solvent institution facing a liquidity crisis; central bank or taxpayers
• B)helps an insolvent institution; borrower
• C)helps a bank take over another financial institution; bank being purchased
• D)prevents a credit crunch; Treasury Department

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Definitions:

Education Processes

Refers to the methods and systems involved in acquiring knowledge and skills, including teaching, learning, and assessment practices.

Theoretical Perspectives

Different lenses through which one can view and analyze an issue or concept in social science, each with its own set of assumptions and focal points.

Self-fulfilling Prophecy

A prediction or belief that causes itself to come true due to the positive feedback between belief and behavior.

Real Consequences

Tangible, measurable outcomes or results that stem from actions or events in the real world, impacting individuals or societies.