tcgtmg2 tcgtmg2

26-05-2017
Business

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A "bank run" takes place when a large number of people withdraw their money at once. How might the Federal Reserve support a bank to ensure that all of the depositors would get their money back if there were a bank run?

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musubi01 musubi01

29-05-2017

By lending money to the bank

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Tundexi Tundexi

03-06-2022

The federal Reserve will support the bank by lending money to the bank.

What is the federal Reserve?

The federal Reserve have a main role of setting interest rates, managing the money supply and regulating financial markets.

When large number of people withdraw their money at once, the federal Reserve will support the bank by lending money to the bank.

Read more about federal Reserve

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