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As a "Lender of Last Resort," the Fed

Question 305

Multiple Choice

As a "lender of last resort," the Fed


A) is obligated to bail out any depository institution in the country that is in financial difficulty.
B) protects the deposits of $100,000 or less in all commercial banks in the country.
C) provides loans to banks experiencing temporary liquidity problems.
D) bails out any corporation the government has decided should not fail.

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