Discount lending today is primarily used for:

Question

Quizplus · Accepted Answer

Discount lending is primarily used to provide short-term financial stability to banks and prevent bank panics. It helps banks to meet their liquidity needs and avoid potential runs from depositors. Discount lending can also indirectly help to control reserves by stabilizing the banking system as a whole. However, the primary purpose is to ensure the stability of individual banks and the overall banking system.

Discount Lending Today Is Primarily Used For