Question

The federal reserve's role as a lender of last resort involves lending to which of the following financially troubled institutions? Governments in developing countries during currency crises.

U.S. banks that cannot borrow elsewhere.
U.S. state governments when they incur a budget deficit.
Local police and fire departments when they can no longer pay their employees.

Answer 1

U.S. banks that cannot borrow elsewhere.

Step-by-step explanation: