The Fed has been called "the lender of last resort" because it
A) is the biggest bank in the country.
B) is the only lender to the federal government.
C) serves as the last place to acquire loans for banks suffering cash management,or liquidity,problems.
D) a and b
E) all of the above

Question

Quizplus · Accepted Answer

The Fed is called "the lender of last resort" because it serves as the last place to acquire loans for banks suffering cash management, or liquidity, problems. This means that when other options have been exhausted, banks can turn to the Fed for short-term loans to meet their liquidity needs.

The Fed Has Been Called "The Lender of Last Resort