One Lesson Learned from the Bank Panics of the Early

question 56

Multiple Choice

One lesson learned from the bank panics of the early 1930's is:

• A) the lender of last resort function almost guarantees that bank panics are a thing of the past.
• B) the mere existence of a lender of last resort will not keep the financial system from collapsing.
• C) only the U.S. Treasury can be a true lender of last resort.
• D) the financial system will collapse without a lender of last resort.

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Definitions:

Morality

A system of beliefs, values, and principles that guides and determines acceptable behavior in society.

Cultural Relativism

People look to societal norms for what is morally right and wrong.

Moral Theory

A systematic framework for understanding, analyzing, and distinguishing right from wrong behavior.

Moral Dilemma

A situation in which there is a conflict between moral values.