When the Fed acts as a lender of last resort,the type of lending it provides is
A)primary credit.
B)seasonal credit.
C)secondary credit.
D)installment credit.

Question

Quizplus · Accepted Answer

When the Fed acts as a lender of last resort, it provides secondary credit. This type of lending is extended to healthy banks that are unable to obtain primary credit from other sources. Secondary credit is typically provided at a higher interest rate than primary credit, and borrowers are required to pledge collateral to secure the loan.

When the Fed Acts as a Lender of Last Resort,the