17
QuizMultiple Choice

Banking

Question 17 • * HSA 26-27 Economics

A responsibility the Federal Reserve has is to

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

Explanation

The Federal Reserve can lend money to banks facing short-term funding problems, especially during a financial crisis. This role is known as being a lender of last resort. It does not generally make loans to corporations or provide everyday banking services to consumers.

AI-written and checked against the verified answer.

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