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"Lender of Last Resort" Means That the Central Bank

Question 58

Multiple Choice

"Lender of last resort" means that the central bank


A) has to lend money to failing banks.
B) should lend money to individuals if their bankruptcy would threaten the banking system.
C) should lend money to banks that are suffering short-term liquidity shortages.
D) should lend money to pay for government deficits.
E) None of the above

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