What’s the fed. The Federal Reserve System may be the main bank system regarding the united states of america, which conducts the nation’s financial policy
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Learning Goals
Explain why the Federal Reserve functions as the “lender of final measure”
Key Takeaways
Key Points
- There's been some critique for this specific Fed function, since it shifts obligation far from loan providers and borrowers and adversely impacts other events by means of inflation.
- Through its discount and credit operations, Reserve Banks offer liquidity to banking institutions to generally meet short-term needs stemming from seasonal changes in deposits or withdrawals that are unexpected.