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The Federal Reserve Makes Discount Loans to Banks,and Similarly,the FHLBS

Question 101

Multiple Choice

The Federal Reserve makes discount loans to banks,and similarly,the FHLBS makes loans to savings and loan institutions. The Fed loans are expected to be repaid ________ while the FHLBS loans are ________.


A) quickly;for longer periods of time
B) when the bank becomes solvent;to be repaid quickly
C) quickly;to be repaid when the S&L becomes solvent
D) when the market rebounds;of short duration

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