Which of the following is true of the Federal Reserve Board (the Fed)? O The pre

Question

Which of the following is true of the Federal Reserve Board (the Fed)? O The premium rate is the rate that the Fed charges to loan money to banking institutions. O The Fed is the lender of last resort for banks that borrow money from it O Its only responsibility is to control the money supply in the economy O The interest rates that the Fed charges are lower than those charged on loans of comparable risk elsewhere O The low interest rate charged by the Fed encourages banks to borrow money from it

Explanation / Answer

(b) The Fed is the lender of last resort for banks that want to borrow money.

(b) the money supply decreases.

(d) help stop bank failures.

(b) it lent money to non banks at the discount window.

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