When the Fed Acts as a Lender of Last Resort,the

question 77

Multiple Choice

When the Fed acts as a lender of last resort,the type of lending it provides is

• A)primary credit.
• B)seasonal credit.
• C)secondary credit.
• D)installment credit.

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Definitions:

Proper Presentment

Proper Presentment is a legal term referring to the formal presentation of a negotiable instrument, like a check, to the party liable on the instrument, for payment or acceptance.

UCC

A thorough set of legal guidelines for the governance of commercial transactions in the United States is provided by the Uniform Commercial Code.

Clearinghouse Procedure

A process handled by a clearinghouse, which acts as an intermediary between buyers and sellers in financial markets, ensuring the smooth execution of transactions.

Drawer Liability

Drawer liability pertains to the legal responsibility of the person who writes or signs a check or draft to ensure the availability of sufficient funds in the account for the amount specified for payment.