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In: Economics

The Federal Reserve is not required to bail out banks that are not financially sound? However,...

The Federal Reserve is not required to bail out banks that are not financially sound? However, why might the Federal Reserve do this anyway?

a. The Trump Administration has personal financial interests in banks

b. The Fed actually likes bailing out everyone

c. The Federal Reserve might do this in order to fulfill its primary that mandate

d. In a recession or financial crisis, no one has any idea which banks are profitable and sound, and which are not e. This is never a good policy, but it has been done as a political favor

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