The Fed Is Said to Be the "Lender of Last

question 411

Multiple Choice

The Fed is said to be the "lender of last resort" in that

• A) it stands ready to lend to any depository institution that it has decided should not fail.
• B) it makes loans to individuals whom commercial banks do not believe are credit-worthy.
• C) it charges a higher interest rate to borrowers than does any other bank.
• D) it functions as the government's bank only when commercial banks fail to do so.

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Definitions:

Fat Tissue

Biological tissue composed of cells storing fat, which serves as energy storage, insulation, and protection of vital organs in the body.

Muscle Tissue

A tissue in the body composed of fibers that have the ability to contract, thereby producing movement and maintaining posture.

Physical Growth

A developmental process marked by increases in size, height, and weight, as well as changes in body composition over time.

Adult Weight

The body weight of an individual when they have reached full growth and development, distinct from childhood or adolescent weights.