5. The Federal Reserve\'s organization The Federal Reserve\'s role as a lender o

Question

5. The Federal Reserve's organization The Federal Reserve's role as a lender of last resort involves lending to which of the following financially troubled institutions? Governments in developing countries during currency crises U.S. state governments when they run short on tax revenues U.S. banks that cannot borrow elsewhere The Federal Reserve's primary tool for changing the money supply is the U.S. economy (the money supply), the Federal Reserve wil Y In order to increase the number of dollars in

Explanation / Answer

12 regional fed banks

As a lender of last resort, the central bank helps the commercial banks who have become financially bankrupt & their only hope to get funds is cenrrac bank

So option c)

Primary tool is interest rate.

To increase money supply in economy, central bank will buy government bonds

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