How the Fed Is Assisting Hurricane Ravaged Puerto Rico

What role does the New York Fed play in Puerto Rico's banking system?

• It provides loans to local businesses.

• It supervises the banking system and monitors the economy.

• It manages the local currency exchange rates.

• It sets the interest rates for Puerto Rican banks.

Why is there a high demand for cash in Puerto Rico currently?

• Banks are offering high-interest rates on cash deposits.

• Most transactions are being conducted in cash due to power outages.

• There is a new government policy promoting cash usage.

• The local currency has been devalued.

What is one of the main issues facing the banking system in Puerto Rico?

• Banks are unable to open due to a lack of staff.

• There is a surplus of cash in the banks.

• Banks are refusing to accept new customers.

• The banking system has slowed significantly, affecting operations.

What is the concern regarding loans in Puerto Rico?

• Loans are being repaid too quickly.

• Banks are exposed to loans that may not be repaid.

• There is a lack of demand for new loans.

• Interest rates on loans are too low.

What offer have bondholders made to Puerto Rico?

• To provide grants for small businesses.

• To invest in local infrastructure projects.

• To lend money to help pay the debt and qualify for federal loans.

• To buy out the local banks.