The discount window is
A)another name for the discount rate.
B)the means by which the Fed makes discount loans to banks.
C)the spread between the discount rate and the T-bill rate.
D)the period each month during which banks are allowed to apply for discount loans.

Question

Quizplus · Accepted Answer

The discount window is the means by which the Federal Reserve makes discount loans to banks. The discount rate is the interest rate charged on these loans, but it is not synonymous with the discount window. The spread between the discount rate and the T-bill rate is not necessarily the discount window, and the discount window is available to banks on an ongoing basis, not just during a period each month.

The Discount Window Is