The Need for a Lender of Last Resort Was Identified

question 44

Multiple Choice

The need for a lender of last resort was identified as far back as:

• A)The start of the Great Depression in 1929
• B)1913, when the Federal Reserve was created
• C)1873, by British economist Walter Bagehot
• D)1776, by the first U.S.Secretary of the Treasury, Alexander Hamilton

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Definitions:

GAAP

A set of widespread accounting rules and standards, referred to as Generally Accepted Accounting Principles, used for financial reporting.

Fair Value

The estimated market value of an asset or liability, reflecting the amount at which it could be bought or sold in a current transaction between willing parties.

Residual Value

The estimated amount that an asset will be worth at the end of its useful life, often used in calculating depreciation and lease payments.

Straight-Line Method

The Straight-Line Method is a way of allocating the cost of an asset evenly over its useful life, commonly used in depreciation and amortization calculations.