5
QuizMultiple Choice

Banking — Quiz

Question 5 • Economics

A responsibility the Federal Reserve has is to

Answer
A
loan money to corporations for capital.
B
provide financial services to corporations.
C
provide banking services to consumers.
D
loan money to banks during a crisis.

Explanation

The Federal Reserve can act as a lender of last resort, providing loans to banks facing a shortage of funds, especially during a financial crisis. It does not generally provide everyday banking services to consumers or lend directly to corporations for their capital needs. Therefore, the correct choice is “loan money to banks during a crisis.”

AI-written and checked against the verified answer.

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