The Concept of "Lender of Last Resort" Is That When

question 37

Multiple Choice

The concept of "lender of last resort" is that when

• A)lending decreases, the Fed will be the last to resort to higher interest rates.
• B)borrowing increases, the Fed will be the last to increase lending.
• C)commercial banks are hesitant to lend, the Fed will step in and increase reserves.
• D)a borrower has tried everyone else, the Fed will lend directly to them.

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Definitions:

American Psychological Association

A leading scientific and professional organization representing psychology in the United States, dedicated to advancing the creation, communication, and application of psychological knowledge to benefit society and improve lives.

Frequency Polygons

A graphical representation of the distribution of a dataset that shows the frequencies of classes via connected dots.

Variability

The measure of how spread out or scattered scores are in a distribution.

Modality

The number of peaks or modes in the distribution of data, used to describe the shape of the data distribution.