The Creation of the Federal Reserve in 1913

question 45

Multiple Choice

The creation of the Federal Reserve in 1913:

• A) provided the opportunity for lender of last resort but not the guarantee that it would be used.
• B) guaranteed the Federal Reserve would always act as lender of last resort.
• C) eliminated bank panics in the U.S.
• D) was in response to the Great Depression in the U.S.

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Definitions:

Esophagus

The muscular tube that conveys food and liquids from the mouth to the stomach, playing a vital role in digestion.

Pulmonary Artery

The artery carrying deoxygenated blood from the right ventricle of the heart to the lungs for oxygenation.

Tympanic

Relating to the tympanum or eardrum, often used in the context of measuring body temperature via the ear canal.

Abnormally Low

Describing a condition or value that is much less than the normal or expected level.