Which Organization Functions as a Lender of Last Resort for National

question 212

Multiple Choice

Which organization functions as a lender of last resort for national governments?

• A) The World Bank
• B) The U.S. Treasury
• C) The Federal Reserve Bank
• D) The International Monetary Fund

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Definitions:

Parent

In financial terms, this refers to a parent company that owns enough voting stock in another company to control its operations and policies.

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company, known as the parent company.

Affiliate

A company that is controlled by a parent company or is closely related to another company through common ownership or control.

Available-for-sale Securities

Financial assets that are not classified as held-to-maturity or trading securities, and can be sold in the short term for liquidity purposes.