When the Fed makes a discount loan, the impact on the Banking System's balance sheet is:

Name: When the Fed makes a discount loan, the impact on the Banking System's balance sheet is:
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When the Fed makes a discount loan to a bank, it increases the bank's reserves (an asset for the bank) without an immediate change in its liabilities, similar to the effect of an open market purchase where the Fed buys securities from banks, thereby increasing the banks' reserves.

When the Fed Makes a Discount Loan, the Impact on the Banking