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21 August, 10:54

What does "lender of last resort" mean with respect to the Federal Reserve?

a. It will lend money to a bank in a financial emergency.

b. It makes decisions about who a bank can lend money to.

c. It decides interest rates for interbank loans.

d. It has the power to decide how much money a bank can lend out.

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  1. 21 August, 11:17
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    The correct answer is a. It will lend money to a bank in a financial emergency. The meaning of "lender of last resort" with respect to the Federal Reserve is to let banks borrow a certain amount of money to address financial discrepancies.
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