Question

What can the Federal Reserve do to help a private bank during a bank run?

A. Ensure deposits so that customers don't lose any of their money.
B. Declare a bank holiday so that banks don't have to open their doors.
C. Issue bonds to enable the bank to afford to make more loans.
D. Provide a short-term loan to the bank to enable it to meet customers' withdrawals.

Answer 1

The Federal Reserve — or "the Fed" — is the central bank of the United States. Let's just start with what a central bank is, since plenty of countries have them. Actually, the U.S. was pretty late to the central banking game, as Americans' spirit of individualism generally inspires disdain for large, centrally-coordinated government authorities. Central banks are tasked with controlling interest rates, the money supply, and overseeing the banking system

Answer 2

i still dont understand .-.

Answer 3

The Fed's mandate is "to promote sustainable growth, high levels of employment, stability of prices to help preserve the purchasing power of the dollar and moderate long-term interest rates," according to the Federal Reserve's web site.

What does that mean? The Fed has to make sure the U.S. has a sound banking system and a healthy economy.

Answer 4

I take it that helped?