If the Lender of Last Resort Function of the Government

question 93

Multiple Choice

If the lender of last resort function of the government is to be effective in working to minimize a crisis, it must be:

• A) reserved only for those banks that are most deserving.
• B) used on a limited basis.
• C) credible, with banks knowing they can get loans quickly.
• D) only available during economic downturns.

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Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be observed.

Eye Movements

The voluntary or involuntary motion of the eyes, which can indicate attention, intention, or cognitive processes.

Barrier

An obstacle that prevents movement or access from one place to another or impedes progress in achieving a goal.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, typically developed in infancy.