One of the reasons primary credit exists is to:

Name: One of the reasons primary credit exists is to:
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

Primary credit exists to provide additional reserves when the open market staff's forecasts are off. This helps to maintain stability in the financial system and prevent short-term liquidity shortages in banks. It is not intended to be a bailout for banks in financial trouble or a source for long-term capital. Additionally, primary credit loans are not unsecured; collateral is required.

One of the Reasons Primary Credit Exists Is To