Examlex
For the period 1926-2008, which one of the following had the smallest risk premium?
Government Securities
Financial instruments issued by the government to raise funds from the public, promising to pay back with interest.
Lender of Last Resort
An institution, usually a country's central bank, which offers loans to banks or financial institutions that are struggling to survive in order to prevent systemic failure.
Federal Reserve System
The central banking system of the United States, responsible for setting monetary policy, regulating banks, maintaining financial stability, and providing banking services.
Fractional Reserve System
The fractional reserve system is a banking system in which banks hold reserves that are less than the amount of their customers' deposits, allowing them to lend or invest the remainder to earn interest.
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