The FHLBS gives loans to S&Ls and thus performs a function similar to the ________ for commercial banks.

Question

Quizplus · Accepted Answer

The Federal Home Loan Banks System (FHLBS) function as a lender of last resort for savings and loans (S&Ls) and provides them with low-cost loans to support liquidity and lending. This is analogous to the Federal Reserve's role as a lender of last resort for commercial banks through the discount window. The US Treasury issues government debt, the Office of the Comptroller of the Currency regulates national banks, and the US Mint produces coins and currency. None of these entities are directly responsible for lending to banks or S&Ls.

The FHLBS Gives Loans to S&Ls and Thus Performs a Function