The Fed Has Been Called "The Lender of Last Resort

question 51

Multiple Choice

The Fed has been called "the lender of last resort" because it

• A) is the biggest bank in the country.
• B) is the only lender to the federal government.
• C) serves as the last place to acquire loans for banks suffering cash management,or liquidity,problems.
• D) a and b
• E) all of the above

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Definitions:

Requirements

Conditions or specifications that must be met or complied with.

Preauthorized Payments

Financial transactions that are scheduled to recur at predetermined intervals, where funds are automatically transferred from an individual's bank account or credit card to pay for services or goods.

EFTs

Electronic Funds Transfers, which refer to the digital transfer of money between accounts, often across banking institutions, without the need for physical exchange of cash.

Bank's Obligation

The legal and ethical duties a bank owes to its customers, including confidentiality, fair treatment, and the proper handling of transactions.