At the time of its founding, which tool was thought to be the most useful for the Fed?
A)changing the reserve requirement
B)altering deposit interest rates
C)lending to banks
D)open market operations

Question

At the time of its founding, which tool was thought to be the most useful for the Fed?
A)changing the reserve requirement 
B)altering deposit interest rates 
C)lending to banks 
D)open market operations

Quizplus · Accepted Answer

At the time of its founding, the Federal Reserve was primarily intended to serve as a lender of last resort to banks, making lending to banks the most useful tool.

At the Time of Its Founding, Which Tool Was Thought