To obtain a discount loan from the Fed, a commercial bank must:

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To obtain a discount loan from the Fed, a commercial bank must provide collateral. This collateral serves as security for the loan and helps ensure that the bank will repay the loan. The Fed may accept a variety of assets as collateral, such as Treasury securities, high-grade corporate bonds, and certain types of loans. The other options listed are not requirements for obtaining a discount loan from the Fed; however, commercial banks are subject to regular examinations regardless of whether they obtain a discount loan.

To Obtain a Discount Loan from the Fed, a Commercial