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:

Work Assignment

A task or set of tasks given to an individual or group as part of their job or studies.

Incentive

Something that motivates or encourages an individual to take action or behave in a certain way.

Homeostasis

The process by which living organisms regulate their internal environment to maintain a stable, constant condition for survival.

Ambient Temperature

The air temperature of any object or environment where equipment is stored or operated.