To deal with the financial crisis of 2007-2009,the Fed extended its lender of last resort function to include institutions other than banks.

Question

Quizplus · Accepted Answer

This statement is true. During the financial crisis of 2007-2009, the Fed extended its lender of last resort function to include institutions such as investment banks and other non-bank financial institutions. This was done to provide liquidity to the financial system and prevent a complete collapse of the banking system.

To Deal with the Financial Crisis of 2007-2009,the Fed Extended