1-61 The federal government has traditionally extended safety nets to DIs consisting of

Question

Quizplus · Accepted Answer

The question is asking for the safety nets extended to DIs, or depository institutions. The three options that relate to DIs are deposit insurance, discount window borrowing, and reserve requirements. Option A includes all three, but reserve requirements have not been mentioned in the question. Option C includes unemployment insurance, which is not relevant to DIs. Option D includes open market operations, which is a tool used by the Federal Reserve to manage monetary policy but is not a safety net. Therefore, the best choice is B, deposit insurance and discount window borrowing.

1-61 the Federal Government Has Traditionally Extended Safety Nets to DIs