Resolution authority means that:
A)the government has the power to seize control of financial institutions that need a bailout.
B)a member of Congress has the power to propose resolutions on the floor of Congress.
C)banks have the ability to transform short-term liabilities into long-term liabilities.
D)Congress has given the Federal Reserve permission to act as a lender of last resort.

Question

Quizplus · Accepted Answer

Resolution authority refers to the legal power of a government or regulatory agency to take control of and restructure or liquidate a failing financial institution in order to minimize the impact on the overall economy. This is usually done as a last resort to prevent a systemic financial crisis.

Resolution Authority Means That