Answered

Which of the following best describes how the Federal Reserve Bank helps
banks
during a bank run?
A. The Federal Reserve Bank acts as an insurance company that
pays customers if their bank fails.
B. The Federal Reserve Bank has the power to take over a private
bank if customers demand too many withdrawals.
C. The Federal Reserve Bank can provide a short-term loan to banks
to prevent them from running out of money.
D. The Federal Reserve Bank regulates exchanges to prevent the
demand for withdrawals from rising above the required reserve
ratio.



Answer :

GinnyAnswer

Final answer:

The Federal Reserve Bank serves as a lender of last resort, offering short-term loans to assist banks during a bank run.


Explanation:

The Federal Reserve Bank helps banks during a bank run by acting as a lender of last resort, providing short-term loans to prevent banks from running out of money. In the event of a bank run, the Fed lends to sound banks to quell the run, ensuring depositors that their money is safe.


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