What does “lender of last resort” mean with respect to the federal reserve? a. it will lend money to a bank in a financial emergency. b. it makes decisions about who a bank can lend money to. c. it decides interest rates for interbank loans. d. it has the power to decide how much money a bank can lend out.

"Lender of last resort" means with respect to the Federal Reserve that it will lend money to a bank in financial emergency.

So the correct answer is A.

Hope this helps,

Davinia.

The correct answer is a. It will lend money to a bank in a financial emergency.

Explanation:

At certain point, the banks can be affected by “liquid crisis”, this means, even when they have resources, they don’t have enough cash to pay the demand from the investors. The role of lender of last resort, like the federa reserve,  is played by central banks, which can lend additional funds to banks by taking their assets as collateral.

yes he did writing dots to make the answer

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