The Fed's Lender-Of-Last-Resort Function

question 23

Multiple Choice

The Fed's lender-of-last-resort function

• A)has proven to be ineffective.
• B)cannot prevent runs by large depositors.
• C)is no longer necessary due to FDIC insurance.
• D)creates a moral hazard problem.

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Definitions:

DBMS

Acronym for Database Management System, a software system designed to store, manage, and retrieve data from databases.

Browser

Software used to access and navigate the Internet, displaying web pages and facilitating online communication.

Birthdate

The exact date when a person was born, typically expressed as day, month, and year.

Smallest To Largest

A sorting order that arranges items or numbers from the lowest value to the highest value.