During the Banking Crisis of the 1930s, the Federal Reserve

question 190

Multiple Choice

During the banking crisis of the 1930s, the Federal Reserve:

• A)ended the crisis by acting aggressively as a lender of last resort.
• B)rushed to guarantee the liabilities of failing banks.
• C)was established to resolve the banking crisis.
• D)had the legal ability to act as a lender of last resort but failed to do so.

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