When the Federal Reserve lends money to banks and other financial institutions because no one else will, it is: Please choose th

Question

1 year ago

6

When the Federal Reserve lends money to banks and other financial institutions because no one else will, it is: Please choose th

e correct answer from the following choices, and then select the submit answer button. Answer choices acting as a lender of last resort. conducting open market operations. creating a liquidity crisis. acting as a primary market participant.

Business

1 answer:

inessss [21] · Answer 1 · 2023-10-22T05:48:22+03:00

The Federal reserve is acting as a lender of last resort when its lends money to banks and other financial institutions because no one else will/

<h3>What is the Federal Reserve?</h3>

It is the United states central banking system that is responsible for the nation's monetary policy and regulation of the supply of money and interest rates.

One of the role of Federal reserve is to act as a lender of last resort when its lends money to banks and other financial institutions because no one else will.

Therefore, the Option A is correct.