ctorrao ctorrao

31-07-2024
Business

Answered

Currently, bank runs are a major problem for the U.S. banking system and the Fed.

A. True
B. False

Answer :

GinnyAnswer GinnyAnswer

31-07-2024

Final answer:

Bank runs can lead to bank failures, which the Fed tries to prevent by acting as a lender of last resort.

Explanation:

Bank runs can cause solvent banks to fail, leading to instability in the financial system. The Federal Reserve (Fed) acts as a lender of last resort to prevent this by providing funds to banks. Deposit insurance and regulatory measures aim to reassure customers and prevent bank runs.

Learn more about Bank runs and the Federal Reserve here:

https://brainly.com/question/38821081

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