Major grade questions please make sure it’s right

One way in which the european union encourages trade among countries is through the use of

Gif the public and community loses trust in banks it affects the entire u.s. financial system. in order to keep this type of financial contagion from happening, the fed makes as needed short-term emergency loans, by acting as the lender of last resort. guides and regulates private deposit insurance programs to cover insolvent bank losses. decreases the money supply as acting lender of last resort.

What does the author describe in this passage