Discount loans made as lender of last resort are _, while rescue loans made by the Federal Reserve during the financial crisis of 2007-2009 were _.
A) risky loans to prevent illiquidity; riskless loans to prevent insolvency
B) riskless loans made to solvent institutions; risky loans to prevent failure
C) risky loans made to insolvent institutions; riskless loans to prevent failure
D) riskless loans to prevent insolvency; risky loans to solvent institutions
Correct Answer:
Verified
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