The Fed's duties include acting as a lender of last resort and supervising or regulating a variety of financial institutions.
Answer the following statement true (T) or false (F)
True
The Fed lends to banks that have no other alternative. It also oversees the operations of many financial institutions.
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The law of demand states that, all else held constant,
A. price and quantity demanded are inversely related. B. the larger the number of buyers in a market, the lower the product price will be. C. consumers will buy more of a product at high prices than at low prices. D. price and quantity demanded are directly related.
The proposal that trade agreements should include a system which monitors worker conditions and make the results available to consumers in the rich importing country
A) is consistent with the Invisible Hand paradigm. B) is consistent with the market failure approach. C) is consistent with the Ricardian theory of comparative advantage. D) is consistent with the scale economies approach to trade theory. E) is consistent with the principles laid out by the WTO.
Recently, new discount window lending procedures set a penalty rate that is normally __________ short-term market interest rates
A) just below B) above C) approximately equal to D) None of the above.
If the central bank did not follow the Taylor principle, an increase in inflation would lead to a decrease in ________
A) the nominal interest B) the real interest rate C) aggregate output D) all of the above E) none of the above