If the central bank can act as a lender of last resort during a banking panic, banks can
A) encourage the public to borrow directly from the central bank, and this will worsen the banking panic.
B) satisfy customer withdrawal needs and eventually restore the public's faith in the banking system.
C) borrow more and more money from the central bank, and this will lower its reserves and decrease the public's faith in the banking system.
D) call in their loans to their customers and eventually restore the public's faith in the banking system.
B
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Only the bank's best customers will get the prime rate
a. true b. false
Use the following graph to answer the question below. The graph shows that indifference curves are
A. transitive. B. concave. C. objective. D. increasing.
The Coase theorem is the proposition that if property rights exist and are enforced, private transactions are
A) inefficient. B) efficient. C) inequitable. D) illegal. E) unnecessary.
A motivation of developed countries in providing development assistance is
(a) the creation of markets. (b) geopolitical influence. (c) genuine humanitarian concern. (d) all of the above. (e) none of the above.