The financial panic and credit freeze in late 2008 pointed to the Fed's important role as a
A) lender of last resort.
B) creator of inflation.
C) promoter of price stability.
D) promoter of full employment.

Question

Quizplus · Accepted Answer

The financial panic and credit freeze in late 2008 demonstrated the importance of the Fed's role as the lender of last resort, as they provided liquidity and helped stabilize the financial system. Creating inflation, promoting price stability, and promoting full employment are also important roles of the Fed, but they were not specifically highlighted during this crisis.

The Financial Panic and Credit Freeze in Late 2008 Pointed