As a "lender of last resort" the Fed :protects the deposits of $100,000 or less in all commercial banks in the country .bails out any depository institution it has decided should not be allowed to fail .bails out any corporation the government has decided should not fail .is obligated to bail out any depository institution in the country that is in financial difficulty
As a "lender of last resort" the Fed :protects the deposits of $100,000 or less in all commercial banks in the country .bails out any depository institution it has decided should not be allowed to fail .bails out any corporation the government has decided should not fail .is obligated to bail out any depository institution in the country that is in financial difficulty
Chapter14: Money And The Federal Reserve System
Section: Chapter Questions
Problem 15SQ
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As a "lender of last resort" the Fed
:protects the deposits of $100,000 or less in all commercial banks in the country
.bails out any depository institution it has decided should not be allowed to fail
.bails out any corporation the government has decided should not fail
.is obligated to bail out any depository institution in the country that is in financial difficulty
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