You are the manager of a local bank. If your bank is experiencing a bank run, where can you turn to for a loan if no other banks will lend to you?
A)the government
B)the market for overnight loans
C)your customers
D)the Federal Reserve

Question

Quizplus · Accepted Answer

The Federal Reserve is the lender of last resort for banks experiencing a bank run. They can provide loans to banks in order to prevent a financial crisis and to maintain stability in the financial system. The other options may not be reliable sources of funding in a crisis situation.

You Are the Manager of a Local Bank