Question

There are ________ member of Federal Reserve regional banks.

The Federal Reserve's role as a lender of last resort involves lending to which of the following financially troubled institutions?

A. U.S. state governments when they run short on tax revenue
B. U.S. banks that cannot borrow elsewhere
C. Governments in developing during currency crises

Answer 1

There are 12 members of Federal Reserve regional banks

The correct option to the second question is B,U.S banks that cannot borrow elsewhere

Step-by-step explanation:

One of the key primary lending roles of the Central Banks the world over is to be last hope of banks under its jurisdiction by being a lender of last resort in hard liquidity times.

The U.S Federal Reserve is not an exception in playing this key role by availing U.S banks the needed liquidity funds in times of liquidity crisis.

The Federal Reserve is part of the U.S government hence option A is wrong.

Lastly,the role of Fed in rendering last resort does not include lending to developing nations.

Answer 2

Answer:A

Step-by-step explanation: