Which of the following best describes how the Federal Reserve Bank helps
banks during a bank run?
O A. The Federal Reserve Bank has the power to take over a private
bank if customers demand too many withdrawals.
O B. The Federal Reserve Bank can provide a short-term loan to banks
to prevent them from running out of money.
O C. The Federal Reserve Bank regulates exchanges to prevent the
demand for withdrawals from rising above the required reserve
ratio.
O D. The Federal Reserve Bank acts as an insurance company that
pays customers if their bank fails.

On february 10, 2014, after issuance of its financial statements for 2013, higgins company entered into a financing agreement with cleveland bank, allowing higgins company to borrow up to $6,000,000 at any time through 2016. amounts borrowed under the agreement bear interest at 2% above the bank's prime interest rate and mature two years from the date of loan. higgins company presently has $2,250,000 of notes payable with star national bank maturing march 15, 2014. the company intends to borrow $3,750,000 under the agreement with cleveland and liquidate the notes payable to star national bank. the agreement with cleveland also requires higgins to maintain a working capital level of $9,000,000 and prohibits the payment of dividends on common stock without prior approval by cleveland bank. from the above information only, the total short-term debt of higgins company as of the december 31, 2013 balance sheet date is