The Fed Can Directly Protect a Bank During a Bank

question 54

Multiple Choice

The Fed can directly protect a bank during a bank run by

• A)increasing reserve requirements.
• B)selling government bonds to the bank.
• C)lending reserves to the bank.
• D)Doing any of the above.

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Definitions:

Executory Contract

An agreement between parties that has not yet been fully performed or completed by one or more parties.

Executed Contract

An executed contract refers to a legal agreement that has been fully performed, meaning all parties involved have fulfilled their contractual obligations.

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, in the absence of an actual agreement between the parties involved.

Quasi Contract Theory

A legal concept that allows a court to award damages to a party as if a contract existed, even though one does not, to prevent unjust enrichment.