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What Is Meant by the Term "Lender of Last Resort

question 185

Essay

What is meant by the term "lender of last resort?" In what circumstances might the Fed be a lender of last resort?


Definitions:

Ritualistic Hand Washing

Compulsive and repetitive washing of hands, often associated with obsessive-compulsive disorder.

Show of Force

An act of displaying military or other power to deter or intimidate opponents or to demonstrate capabilities.

Panic

An intense, sudden onset of fear or anxiety, often with physical symptoms and a sense of impending doom.

Anxiolytic Medication

Drugs that are used to prevent or reduce anxiety, often by affecting neurotransmitter activity in the brain.

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