During a ﬁnancial crisis, the Fed and other central banks always adopt a strict policy of lending only to ﬁnancial ﬁrms
that are solvent but illiquid.

Question

Quizplus · Accepted Answer

During a financial crisis, the Fed and other central banks may adopt more flexible policies, including lending to a broader range of institutions to stabilize the financial system, not strictly limiting assistance to solvent but illiquid firms.

During a ﬁNancial Crisis, the Fed and Other Central Banks