Robert merton called for a style of sociology that avoids extremes: it focuses on institutions, not tiny groups or whole societies, and it holds theory and empirical observation in balance. this type of study is called theory.

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.