A commercial bank's last resort for borrowing reserves is ________.

Question

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The discount window is a facility provided by the central bank (in the United States, the Federal Reserve) that allows commercial banks to borrow reserves on a short-term basis in order to meet reserve requirements or other unexpected liquidity needs. This is considered a "last resort" borrowing option since it is typically more expensive than borrowing from other banks in the federal funds market, and it also carries a stigma of signaling that the borrowing bank may be experiencing financial difficulties. Option A (the federal funds market) is not a last resort, but rather a common source of interbank lending. Option C (the central government) is not a relevant option for borrowing reserves, as the central bank is the entity responsible for managing the money supply and maintaining appropriate levels of reserves in the banking system. Option D (foreign banks) is not a relevant option for US banks for borrowing reserves.

A Commercial Bank's Last Resort for Borrowing Reserves Is ________