The Fed acts as lender of last resort:
A. when deposit insurance isn't enough or when an institution isn't covered by deposit insurance.
B. only when an institution is not covered by deposit insurance but deposit insurance would have been enough.
C. for any institution, household, or business, that faces a solvency crisis.
D. only when an institution is covered by deposit insurance but deposit insurance isn't enough.
Ans: A. when deposit insurance isn't enough or when an institution isn't covered by deposit insurance.
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