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CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY
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Question 4
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Question 4 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY
Why is the Fed often referred to as a “lender of last resort,” or the last lender to turn to in a crisis?
Answer
A
It offers banks financial protection to keep consumers from panicking.
B
It lends consumers money when other banks will not.
C
It keeps all failing banks afloat to avoid economic disruption.
D
It helps finance and stabilize central banks internationally.
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