The Fed Can Directly Protect a Bank During a Bank

question 62

Multiple Choice

The Fed can directly protect a bank during a bank run by

• A)increasing reserve requirements.
• B)selling government bonds to the bank.
• C)lending reserves to the bank.
• D)doing any of the above.

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Definitions:

Spreading Center

Divergent boundary where two oceanic plates move apart (diverge).

Transform Fault

A geological fault where the movement of the Earth's crust is predominantly horizontal, often leading to earthquakes in these regions.

Subduction Zone

A region of the Earth's crust where one tectonic plate moves under another, often associated with volcanic activity and earthquakes.

Ethics Officer

A professional responsible for fostering a culture of ethical conduct within an organization, including developing policies, training, and advice on ethics and compliance issues.