Borrowing at the Federal Reserve discount window is:
A) Common for most banks
B) A requirement of membership in the Federal Reserve System
C) Requires paying a higher interest rate
D) An alternative to Treasury borrowing
E) A privilege, not a right

Question

Quizplus · Accepted Answer

Borrowing at the Federal Reserve discount window is considered a privilege, not a right, as it is intended to provide liquidity support to banks in times of need, rather than being a regular source of funding.

Borrowing at the Federal Reserve Discount Window Is