In its original role as "lender of last resort" the Fed was supposed to
A)lend money to people in regions without banks.
B)lend money to developing nations.
C)keep the money supply from drying up during financial panics.
D)provide mortgage lending to returning soldiers.

Question

Quizplus · Accepted Answer

The Fed's original role as "lender of last resort" was to keep the money supply from drying up during financial panics by providing emergency loans to banks and other financial institutions that were experiencing liquidity problems.

In Its Original Role as "Lender of Last Resort" the Fed