The Primary Purpose of the Lender of Last Resort Is

question 45

Multiple Choice

The primary purpose of the lender of last resort is to

• A)influence the nation's money supply.
• B)prevent financial crises.
• C)control banks' excess reserves.
• D)influence the amount of loans that banks provide to the public.

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Definitions:

Genuineness

Genuineness is the quality of being authentic, honest, and sincere in one's interactions with others.

Defense Mechanisms

Psychological strategies brought into play by individuals to cope with reality and to maintain self-image.

Displacement

In psychoanalytic theory, a defense mechanism where an individual redirects emotional impulses from a real object to a substitute object.

Reaction Formation

A defense mechanism where an individual unconsciously replaces an unacceptable or threatening impulse with its opposite.