When the Fed Acts as a Lender of Last Resort

question 91

True/False

When the Fed acts as a lender of last resort, it lends money to homeowners who are in danger of losing their home through foreclosure.

---

Definitions:

Leveraged Lease

A lease arrangement where the lessor uses borrowed funds to acquire an asset which is then leased to a lessee, effectively leveraging the investment.

Tax-Oriented Lease

A leasing arrangement designed to maximize tax benefits for the lessor, who retains ownership of the asset for tax purposes.

Leveraged Lease

A financing arrangement where a lessor uses borrowed funds to purchase an asset that is then leased to a third party.

Tax-Oriented

Refers to financial strategies or decisions that are primarily influenced by tax considerations.