Statement I: When the Fed was set up in 1913,it was envisaged as a lender of last resort.
Statement II: The Fed did a basically good job in limiting the financial collapse between 1929 and 1933.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Lender Of Last Resort

The role typically assumed by a central bank to provide funds to financial institutions in distress, to prevent systemic failures.

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, regulation of banks, and stability of the financial system.

Financial Collapse

Refers to a sudden and severe downturn in the financial stability of an economy, institution, or market, often leading to a crisis.