The Fed has been called "the lender of last resort" because it
A) is the biggest bank in the country.
B) is the only lender to the federal government.
C) serves as the last place to acquire loans for banks suffering cash management, or liquidity, problems.
D) a and b
E) all of the above
C
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In practice, the Bretton Woods system is best described as
A) an adjustable peg. B) a purely fixed exchange rate C) a gold exchange standard D) Both A and C
According to the World Bank, low-income economies are heavily concentrated in:
a. Europe and Africa. b. Europe and Asia. c. Asia and Africa. d. Asia and Australia. e. North America and Australia.
If the Fed chooses to control the interest rate, it
a. gives up the opportunity of determining the discount rate b. loses control over the money supply c. gives up the opportunity of determining the legal reserve requirement d. gives up the opportunity of determining the federal funds rate e. gives up the opportunity of determining the level of investment
If the price of domestically produced power tools increases, then
a. the consumer price index and the GDP deflator will both increase. b. the consumer price index will increase, and the GDP deflator will be unaffected. c. the consumer price index will be unaffected, and the GDP deflator will increase. d. the consumer price index and the GDP deflator will both be unaffected.