The financial panic and credit freeze in late 2008 pointed to the Fed's important role as:
A) lender of last resort.
B) creator of inflation.
C) promoter of price stability.
D) promoter of full employment

Question

Quizplus · Accepted Answer

The financial panic and credit freeze in late 2008 highlighted the important role of the Fed as the lender of last resort. The Fed was called upon to provide emergency loans to banks and other financial institutions to prevent further economic collapse, which is the function of the lender of last resort. The other choices, such as creator of inflation, promoter of price stability, and promoter of full employment, are all important roles of the Fed, but they were not particularly relevant in the context of the financial crisis in 2008.

The Financial Panic and Credit Freeze in Late 2008 Pointed