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:

Ventral Surface

refers to the front or anterior surface of any body part or organ.

Olfactory Bulbs

Structures located in the forebrain involved in the sense of smell, receiving sensory input from the olfactory nerves.

Anterior

Situated at the front or towards the front of the body.

Meninges

Protective membranes that cover the brain and spinal cord, consisting of three layers: the dura mater, arachnoid mater, and pia mater.